OH THAT WAS UnDeR DuReSs of gestahpo manza rulefor a 1000 yrs ;seems the shelf life is about the same lol
Mazza FIRED. Orgne in receivership
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Re: Mazza FIRED. Orgne in receivership
didn't you ornge folks sign confidentiality agreements.
OH THAT WAS UnDeR DuReSs of gestahpo manza rulefor a 1000 yrs ;seems the shelf life is about the same lol
OH THAT WAS UnDeR DuReSs of gestahpo manza rulefor a 1000 yrs ;seems the shelf life is about the same lol
Re: Mazza FIRED. Orgne in receivership
I don’t understand why he’s not getting charged? It’s no secret he manipulated the system, got away with it and then got caught. He’s a pretty smart man and his intentions are clear, therefore, why isn’t he getting charged with fraud? I love how the media or whoever mentioned the "no severance package" deal. Good work guys. You sure put him in his place. He’s really scared now. Tisk Tisk. You better say sorry to everyone Mr. Mazza. It’s strange how the system works. I laugh at the deal, however, sadness does strike when thoughts come across to everyone who’s not involved. So what’s Mazza up to now? I’m sure with the millions he made (which by the way he can keep because he’s not getting a severance package – lol) he’ll come up with another business that allows him to partake in similar practices. He has to have one friend he trusts to place a business under his name. If that’s not working he’ll shave his head and give himself a unibrow, along with a quick name change and work the system at another organization. Come on guys why do we let mud slide. This is white color crime. Take the guy to court and let’s start the process. I’m sure he might have some regrets, however, regret thinking is probably a lot more painful when your behind bars and sleeping on concrete floors. Please tell me I'm thinking normally here. Anyways I hope all Ornge crews make it thru and NOBODY looses their job. Cheers!
Re: Mazza FIRED. Orgne in receivership
ORNGE boss Chris Mazza and his dreams and schemes
Published On Tue Feb 07 2012
Former ORNGE president Dr. Chris Mazza speaks at the launch of a new line of air ambulance helicopters.
Former ORNGE president Dr. Chris Mazza speaks at the launch of a new line of air ambulance helicopters.
AGUSTA WESTLAND WEBSITE
Kevin Donovan Staff Reporter
On a sleepy cottage afternoon, Dr. Chris Mazza stood abruptly and told neighbours at a Star Lake residents meeting he had to step out.
“I am needed,” Mazza said.
Taking his satellite telephone, the founder of ORNGE Air Ambulance (salary $1.4 million a year) trotted down to the beach where he paced the sand, talking animatedly into the portable unit.
Thirty minutes later he was back.
“There was a medical emergency somewhere in Ontario,” he told the cottagers. “I was directing the air ambulance. I was telling the helicopter where to go.”
Cottagers at the meeting near Parry Sound several years ago, including Paul MacDonald, rolled their eyes, thinking it odd that a president and chief executive officer was acting as a flight controller.
Mazza has now left the service he founded in 2005, terminated after a series of scandals involving secretive and high salaries, executive perks, mysterious payments from suppliers, and wasted public money. Ontario’s health ministry dismissed warnings and allowed the ORNGE problem to fester.
Control freak, passionate, tyrannical, inspiring and given to obsessive tendencies is how former co-workers describe the founding president of the air ambulance service that annually receives $150 million in taxpayer money. Even though he had more than 200 employees, including veteran flight controllers and doctors at ORNGE’s state-of-the-art command centre, Mazza always insisted on trying to do everything himself.
“He always considers himself the smartest guy in the room,” recalls Jacob Blum, the savvy right-hand man who did his bidding until 2008. Mazza’s curriculum vitae is 28 pages long.
Cross Mazza, you lost your job.
“He’s done. Put a toe tag on him,” Blum recalls Mazza as saying, frequently using a morgue reference to instruct Blum that someone’s time at ORNGE was up.
In one instance, Mazza not only got rid of an employee who criticized him, he ordered private detectives to tail the man. (The private-eye reports show it cost ORNGE $15,000 to determine the man went shopping with his family and they went to bed at a decent time).
Confidentiality agreements were signed before dismissed employees were paid severance. At least three, including the man followed, have asked provincial investigators for permission to break that agreement.
At ORNGE, Blum saw public money being used for private gain (a $40,000 speedboat purchase was his personal final straw) and took a leave of absence and never returned. Mazza’s tirades, frequent middle-of-the-night phone calls and abusive behaviour sent Blum into a Percocet painkiller addiction from which he has now recovered. He hopes ORNGE can regain the public trust.
“The vision of ORNGE is sound — the ideal, the hardworking men and women who showed up every day and tried to give the best patient care possible. That is what I hope the service gets back to,” says Blum.
Mazza has not responded to requests for an interview for this or other Toronto Star stories.
Mazza was an emergency room doctor at Sunnybrook Health Sciences Centre, which, in the early 2000s, was the “base hospital” for a very different air ambulance service than Ontario has today. In those days, small airlines and one large helicopter firm worked on contract for the Ministry of Health. The Sunnybrook-based dispatch team called in a plane or chopper when needed. As part of the contract, the companies had to outfit aircraft as air ambulances.
Mazza hooked up for a brief time with an air ambulance firm, learning the business from inside out. By 2002, he had met Blum, a government relations specialist with Conservative ties. (Ontario had a Conservative government at the time). He and Mazza discussed building a new air ambulance service, funded by the province, but at arm’s-length.
The Liberals won the election in 2003, George Smitherman became health minister and the courting began. Smitherman recalled to the Star that “when I left (government) 3½ years ago, they weren’t a for-profit operation and the guy wasn’t making a fortune.”
In 2005, ORNGE was created by Smitherman and Mazza. Air ambulances in Ontario were always painted orange and Mazza liked “Orange” as the brand name. But Orange is one of the largest telecommunications firms in the world and lawyers said they would face trademark issues. Blum suggested they drop the “A” and they did. (Conservative critic Frank Klees has quipped that in losing the A they lost “accountability.”)
Mazza lived in Etobicoke. His first marriage, which produced one child, Josh, had collapsed and he remarried. There are two children from that union. Mazza and his family were sporty, water skiing in the summer at the cottage, skiing in the winter. One year into ORNGE’s existence, Mazza and Josh, then 14, were skiing at Beaver Valley Ski Club on a Sunday morning in 2006. On a run called Long John, Josh crashed. The trauma to Josh’s head proved fatal.
At the funeral, Blum and Mazza arranged for a “flyover” by two ORNGE choppers.
Understandably, Mazza changed that day. He became even more driven, more mercurial, Blum and other insiders say.
Stacks of ORNGE documents obtained by the Star reveal an acceleration of plans.
On paper, the idea seemed excellent. Build a world-class air ambulance service and, since Ontario was short on health dollars, sell the expertise internationally, returning any profit to Ontario.
“I wanted to be able to go to the health ministry one day and say ORNGE does not need as much funding as we used to,” Blum says.
That’s not how it developed. Mazza, documents reveal, was only going to give back 3 per cent of gross revenue to Ontario. The rest would go to one of his ORNGE Global companies. (Mazza was controlling shareholder and several of his executives and board members had shares.)
As Mazza’s plans got rolling, Blum says advice was sought from lawyers at Toronto firm Fasken Martineau. (ORNGE recently revealed that its legal bill, including fees, expenses and disbursements, 2006-2012 is $11 million, of which Fasken’s share is about $9 million).
One lawyer was Guy Giorno, a lawyer who previously served as chief of staff to both Ontario Premier Mike Harris and Prime Minister Stephen Harper. In memos on the ORNGE file in early 2007, Giorno commented that if ORNGE were restructured to include a series of for-profit companies, salaries would not have to be disclosed to the public under the current law.
(The Star’s first story last December detailed how the salaries of Mazza and other top executives were not disclosed on the provincial Sunshine List.)
Giorno also noted that ORNGE’s plan to seed the for-profit company with a $1.6 million loan in public money “might give rise to an issue” under Ontario regulations that specify public money can only be used for public purpose.
Blum recalls that Mazza did not like that advice. Enter Alf Apps, who, until recently, was the president of the Liberal Party of Canada. Apps is also a Fasken lawyer, described as a “counsel” to their firm.
Apps wrote in 2007, in a draft letter addressed to Mazza, that it was legal for the non-profit ORNGE to invest in the for-profit ORNGE businesses. Ministry of Finance investigators are probing the use of public money for private purpose at ORNGE.
Mazza had completed his executive MBA by 2004, taking his studies through the Richard Ivey School of Business at Western in London. He frequently lectured about adapting to change.
In one talk, Mazza began:
“I don’t even begin to pretend to apologize as a leader now to my staff to say the company today is going to be unrecognizable in a year,” said Mazza, a passionate speaker. “I just have to figure out how to help them deal with that.”
At ORNGE headquarters, Mazza ran his employees hard. Blum, a vice-president, had to be on call 24 hours a day. A father of five children, Blum says Mazza would summon him whenever he had a new idea. Middle of the night was usual. Blum rarely saw his own wife and family during those days.
Insiders recall plans hatched seemingly overnight. From a service that was run out of Sunnybrook with a 25-person staff came the leasing of increasingly more posh offices and, finally, the purchase of a $15 million building staffed with 234 people, many of whom were executives. Where the old service used contracted airlines, Mazza decided to purchase helicopters from Italy and a fleet of single-engine aircraft from Switzerland.
In both cases, Mazza directed the design of the medical interiors and laid out his plans on visits to the suppliers in Europe. The over-equipped, heavy systems he called for in both cases have caused serious problems at ORNGE. New boss Ron McKerlie is trying to fix them.
Money was no object for Mazza. The Star has documented a wild spending spree, at the same time as his flight controllers were told never to launch unless they were absolutely sure an air ambulance was needed. That policy has been changed.
In one case of wasted money, the Star recently learned that there are highly expensive “ORNGE Pickers” in a Thunder Bay warehouse. The hydraulic units were to be mounted inside the newly purchased PC-12 airplanes Mazza selected. Each “picker” was supposed to reach out and pick up a patient and stretcher and bring the patient inside the air ambulance.
The problem? The pickers — insiders say they are $100,000 each and there are about 10 — are too heavy for the plane. ORNGE was asked about this Tuesday, but has yet to respond.
Mazza, whose second marriage collapsed, surrounded himself with many executives. Some were drawn from the ranks of the Liberal government, others were people he had met. One, Kelly Long, a former water ski instructor, became his partner and vice-president and the recipient of a $90,000 executive MBA from Western. (Long, like Mazza, has left ORNGE),
For Blum, nothing upset him more than the day Mazza had ORNGE purchase a $40,000 speedboat to use in J-Smarts, the sports safety charity he created in his late son’s honour.
Blum says Mazza went into negotiations in 2007-2008 with the owner of a water-filled quarry in the Guelph area to use as a summer camp. Concerned that this would embarrass ORNGE, Blum drove to Guelph, hopped the quarry fence and saw a makeshift dock, and an Air Nautique speedboat slicing through the water with Long on board.
“I phoned back to another vice-president and said ‘this has to stop’,” Blum recalls.
Blum’s last day at ORNGE was July 17, 2008.
“In retrospect, I created a monster,” says Blum. “It is not something I am proud of.”
Published On Tue Feb 07 2012
Former ORNGE president Dr. Chris Mazza speaks at the launch of a new line of air ambulance helicopters.
Former ORNGE president Dr. Chris Mazza speaks at the launch of a new line of air ambulance helicopters.
AGUSTA WESTLAND WEBSITE
Kevin Donovan Staff Reporter
On a sleepy cottage afternoon, Dr. Chris Mazza stood abruptly and told neighbours at a Star Lake residents meeting he had to step out.
“I am needed,” Mazza said.
Taking his satellite telephone, the founder of ORNGE Air Ambulance (salary $1.4 million a year) trotted down to the beach where he paced the sand, talking animatedly into the portable unit.
Thirty minutes later he was back.
“There was a medical emergency somewhere in Ontario,” he told the cottagers. “I was directing the air ambulance. I was telling the helicopter where to go.”
Cottagers at the meeting near Parry Sound several years ago, including Paul MacDonald, rolled their eyes, thinking it odd that a president and chief executive officer was acting as a flight controller.
Mazza has now left the service he founded in 2005, terminated after a series of scandals involving secretive and high salaries, executive perks, mysterious payments from suppliers, and wasted public money. Ontario’s health ministry dismissed warnings and allowed the ORNGE problem to fester.
Control freak, passionate, tyrannical, inspiring and given to obsessive tendencies is how former co-workers describe the founding president of the air ambulance service that annually receives $150 million in taxpayer money. Even though he had more than 200 employees, including veteran flight controllers and doctors at ORNGE’s state-of-the-art command centre, Mazza always insisted on trying to do everything himself.
“He always considers himself the smartest guy in the room,” recalls Jacob Blum, the savvy right-hand man who did his bidding until 2008. Mazza’s curriculum vitae is 28 pages long.
Cross Mazza, you lost your job.
“He’s done. Put a toe tag on him,” Blum recalls Mazza as saying, frequently using a morgue reference to instruct Blum that someone’s time at ORNGE was up.
In one instance, Mazza not only got rid of an employee who criticized him, he ordered private detectives to tail the man. (The private-eye reports show it cost ORNGE $15,000 to determine the man went shopping with his family and they went to bed at a decent time).
Confidentiality agreements were signed before dismissed employees were paid severance. At least three, including the man followed, have asked provincial investigators for permission to break that agreement.
At ORNGE, Blum saw public money being used for private gain (a $40,000 speedboat purchase was his personal final straw) and took a leave of absence and never returned. Mazza’s tirades, frequent middle-of-the-night phone calls and abusive behaviour sent Blum into a Percocet painkiller addiction from which he has now recovered. He hopes ORNGE can regain the public trust.
“The vision of ORNGE is sound — the ideal, the hardworking men and women who showed up every day and tried to give the best patient care possible. That is what I hope the service gets back to,” says Blum.
Mazza has not responded to requests for an interview for this or other Toronto Star stories.
Mazza was an emergency room doctor at Sunnybrook Health Sciences Centre, which, in the early 2000s, was the “base hospital” for a very different air ambulance service than Ontario has today. In those days, small airlines and one large helicopter firm worked on contract for the Ministry of Health. The Sunnybrook-based dispatch team called in a plane or chopper when needed. As part of the contract, the companies had to outfit aircraft as air ambulances.
Mazza hooked up for a brief time with an air ambulance firm, learning the business from inside out. By 2002, he had met Blum, a government relations specialist with Conservative ties. (Ontario had a Conservative government at the time). He and Mazza discussed building a new air ambulance service, funded by the province, but at arm’s-length.
The Liberals won the election in 2003, George Smitherman became health minister and the courting began. Smitherman recalled to the Star that “when I left (government) 3½ years ago, they weren’t a for-profit operation and the guy wasn’t making a fortune.”
In 2005, ORNGE was created by Smitherman and Mazza. Air ambulances in Ontario were always painted orange and Mazza liked “Orange” as the brand name. But Orange is one of the largest telecommunications firms in the world and lawyers said they would face trademark issues. Blum suggested they drop the “A” and they did. (Conservative critic Frank Klees has quipped that in losing the A they lost “accountability.”)
Mazza lived in Etobicoke. His first marriage, which produced one child, Josh, had collapsed and he remarried. There are two children from that union. Mazza and his family were sporty, water skiing in the summer at the cottage, skiing in the winter. One year into ORNGE’s existence, Mazza and Josh, then 14, were skiing at Beaver Valley Ski Club on a Sunday morning in 2006. On a run called Long John, Josh crashed. The trauma to Josh’s head proved fatal.
At the funeral, Blum and Mazza arranged for a “flyover” by two ORNGE choppers.
Understandably, Mazza changed that day. He became even more driven, more mercurial, Blum and other insiders say.
Stacks of ORNGE documents obtained by the Star reveal an acceleration of plans.
On paper, the idea seemed excellent. Build a world-class air ambulance service and, since Ontario was short on health dollars, sell the expertise internationally, returning any profit to Ontario.
“I wanted to be able to go to the health ministry one day and say ORNGE does not need as much funding as we used to,” Blum says.
That’s not how it developed. Mazza, documents reveal, was only going to give back 3 per cent of gross revenue to Ontario. The rest would go to one of his ORNGE Global companies. (Mazza was controlling shareholder and several of his executives and board members had shares.)
As Mazza’s plans got rolling, Blum says advice was sought from lawyers at Toronto firm Fasken Martineau. (ORNGE recently revealed that its legal bill, including fees, expenses and disbursements, 2006-2012 is $11 million, of which Fasken’s share is about $9 million).
One lawyer was Guy Giorno, a lawyer who previously served as chief of staff to both Ontario Premier Mike Harris and Prime Minister Stephen Harper. In memos on the ORNGE file in early 2007, Giorno commented that if ORNGE were restructured to include a series of for-profit companies, salaries would not have to be disclosed to the public under the current law.
(The Star’s first story last December detailed how the salaries of Mazza and other top executives were not disclosed on the provincial Sunshine List.)
Giorno also noted that ORNGE’s plan to seed the for-profit company with a $1.6 million loan in public money “might give rise to an issue” under Ontario regulations that specify public money can only be used for public purpose.
Blum recalls that Mazza did not like that advice. Enter Alf Apps, who, until recently, was the president of the Liberal Party of Canada. Apps is also a Fasken lawyer, described as a “counsel” to their firm.
Apps wrote in 2007, in a draft letter addressed to Mazza, that it was legal for the non-profit ORNGE to invest in the for-profit ORNGE businesses. Ministry of Finance investigators are probing the use of public money for private purpose at ORNGE.
Mazza had completed his executive MBA by 2004, taking his studies through the Richard Ivey School of Business at Western in London. He frequently lectured about adapting to change.
In one talk, Mazza began:
“I don’t even begin to pretend to apologize as a leader now to my staff to say the company today is going to be unrecognizable in a year,” said Mazza, a passionate speaker. “I just have to figure out how to help them deal with that.”
At ORNGE headquarters, Mazza ran his employees hard. Blum, a vice-president, had to be on call 24 hours a day. A father of five children, Blum says Mazza would summon him whenever he had a new idea. Middle of the night was usual. Blum rarely saw his own wife and family during those days.
Insiders recall plans hatched seemingly overnight. From a service that was run out of Sunnybrook with a 25-person staff came the leasing of increasingly more posh offices and, finally, the purchase of a $15 million building staffed with 234 people, many of whom were executives. Where the old service used contracted airlines, Mazza decided to purchase helicopters from Italy and a fleet of single-engine aircraft from Switzerland.
In both cases, Mazza directed the design of the medical interiors and laid out his plans on visits to the suppliers in Europe. The over-equipped, heavy systems he called for in both cases have caused serious problems at ORNGE. New boss Ron McKerlie is trying to fix them.
Money was no object for Mazza. The Star has documented a wild spending spree, at the same time as his flight controllers were told never to launch unless they were absolutely sure an air ambulance was needed. That policy has been changed.
In one case of wasted money, the Star recently learned that there are highly expensive “ORNGE Pickers” in a Thunder Bay warehouse. The hydraulic units were to be mounted inside the newly purchased PC-12 airplanes Mazza selected. Each “picker” was supposed to reach out and pick up a patient and stretcher and bring the patient inside the air ambulance.
The problem? The pickers — insiders say they are $100,000 each and there are about 10 — are too heavy for the plane. ORNGE was asked about this Tuesday, but has yet to respond.
Mazza, whose second marriage collapsed, surrounded himself with many executives. Some were drawn from the ranks of the Liberal government, others were people he had met. One, Kelly Long, a former water ski instructor, became his partner and vice-president and the recipient of a $90,000 executive MBA from Western. (Long, like Mazza, has left ORNGE),
For Blum, nothing upset him more than the day Mazza had ORNGE purchase a $40,000 speedboat to use in J-Smarts, the sports safety charity he created in his late son’s honour.
Blum says Mazza went into negotiations in 2007-2008 with the owner of a water-filled quarry in the Guelph area to use as a summer camp. Concerned that this would embarrass ORNGE, Blum drove to Guelph, hopped the quarry fence and saw a makeshift dock, and an Air Nautique speedboat slicing through the water with Long on board.
“I phoned back to another vice-president and said ‘this has to stop’,” Blum recalls.
Blum’s last day at ORNGE was July 17, 2008.
“In retrospect, I created a monster,” says Blum. “It is not something I am proud of.”
Re: Mazza FIRED. Orgne in receivership
WOW! 
Looks like lots of stuff to clean up! I wonder how much will be swept under the rug? 
Looks like lots of stuff to clean up! I wonder how much will be swept under the rug? -
esp803
Re: Mazza FIRED. Orgne in receivership
It's a rare occasion where I can say something is truly unbelievable.... This is one of those moments
*edited for auto correct errors*
*edited for auto correct errors*
Last edited by esp803 on Wed Feb 08, 2012 9:22 am, edited 1 time in total.
Re: Mazza FIRED. Orgne in receivership
ORNGE scandal teaches belated lessons
Published On Tue Feb 07 2012
Chris So/Toronto Star
Michael Decter
For the past eight weeks readers of the Toronto Star have watched with mounting disgust the revelations about ORNGE, the entity created to operate Ontario’s air ambulance service. These disclosures have included what appear to be vast overpayments to executives, to lawyers and to others, as well as dubious expenditures on a range of executive perks, including Harley Davidsons, a ski boat and expensive European MBAs.
There is also a series of more troubling questions regarding patient safety. Were the right helicopters purchased from a patient care standpoint? Were dispatch policies based on best patient care or financial requirements? Did any patient die as a result of decisions motivated by financial imperatives?
Once the ORNGE story landed on the front page of the Star, Health Minister Deb Matthews moved swiftly. In less than eight weeks, the board and management of ORNGE have been dismissed and replaced and a large team of auditors has been combing through its records. Ontario Auditor General Jim McCarter, who delayed his report on ORNGE in December to do more work, is set to release his findings shortly. Coroners are reviewing a number of patient cases.
Some lessons can already be drawn about preventing the next ORNGE.
Listen more carefully to front-line staff: Paramedics, who had their requests for air ambulance denied, believed something was wrong. So did those who found the new helicopters a difficult environment for patient treatment. Listening to front-line providers is always essential. At times complaints have no real basis but sometimes where there is smoke there is fire. Complaints from within should not have been dismissed.
Update the sunshine list: The Public Sector Salary Disclosure Act requires annual publication of the pay of vast numbers of public servants, employees of Crown corporations, hospitals, universities and others, earning more than $100,000 per year. As a consequence, a long list of hydro linemen and others who work considerable overtime are swept onto the list. However, ORNGE’s related companies were not subject to salary publication under the act. Excluded from salary disclosure are many quasi-public entities that are nearly completely funded by government because of loopholes in the legislation that provide justification not to disclose.
Provisions should be expanded to cover all those whose pay is overwhelmingly funded by taxpayers, including doctors whose payments from government are disclosed in other provinces. Arguably, the threshold is too low after 15 years of inflation and should be raised to perhaps $200,000 per year, which would allow a greater focus on managerial pay.
Transparency is a terrific solvent when applied broadly and rigorously. Greater transparency could have alerted the public, the opposition and even the government far earlier that ORNGE was off course. As we enter a period of slower growth in funding for public services and harder choices, the credibility of claims advanced by providers as to their financial needs will be strengthened by greater disclosure.
Competitive bidding: When the government seeks to move a function such as air ambulance to an arms-length organization, there should be competitive bidding. E-Health Ontario provided ample evidence of the additional cost to taxpayers of sole-source contracts. Rules were tightened on contracts but ORNGE, the outsourcing of an entire division, was not put to competitive tender either at the beginning of the process or later on. This was wrong. Where government decides that a private sector or arms-length entity can do a better job, there should be tangible evidence of that improved efficiency. Tendering is well established as the best means of achieving that end.
There are many entities operating at arms-length from government that do so with proper regard for the public interest and the taxpayer dollar. The challenge is to subject all such agencies and arrangements to transparency and competitive bidding that encourages behaviour that is fully in the public interest. A cynic might say that the real problem governments have with competitive tendering is that their friends don’t always win.
ORNGE shakes the confidence of citizens who expect their tax dollars to be treated with greater respect. It also breeds the cynicism that has afflicted other democracies such as Greece. When taxpayers do not have confidence they seek to avoid paying the taxes needed for public services. The real and continuing challenge for government is to prove to the public that their tax dollars are being carefully and wisely spent and the quality of their services has not been compromised.
Michael Decter is a former Ontario deputy minister of health and founding chair of the Health Council of Canada.
Published On Tue Feb 07 2012
Chris So/Toronto Star
Michael Decter
For the past eight weeks readers of the Toronto Star have watched with mounting disgust the revelations about ORNGE, the entity created to operate Ontario’s air ambulance service. These disclosures have included what appear to be vast overpayments to executives, to lawyers and to others, as well as dubious expenditures on a range of executive perks, including Harley Davidsons, a ski boat and expensive European MBAs.
There is also a series of more troubling questions regarding patient safety. Were the right helicopters purchased from a patient care standpoint? Were dispatch policies based on best patient care or financial requirements? Did any patient die as a result of decisions motivated by financial imperatives?
Once the ORNGE story landed on the front page of the Star, Health Minister Deb Matthews moved swiftly. In less than eight weeks, the board and management of ORNGE have been dismissed and replaced and a large team of auditors has been combing through its records. Ontario Auditor General Jim McCarter, who delayed his report on ORNGE in December to do more work, is set to release his findings shortly. Coroners are reviewing a number of patient cases.
Some lessons can already be drawn about preventing the next ORNGE.
Listen more carefully to front-line staff: Paramedics, who had their requests for air ambulance denied, believed something was wrong. So did those who found the new helicopters a difficult environment for patient treatment. Listening to front-line providers is always essential. At times complaints have no real basis but sometimes where there is smoke there is fire. Complaints from within should not have been dismissed.
Update the sunshine list: The Public Sector Salary Disclosure Act requires annual publication of the pay of vast numbers of public servants, employees of Crown corporations, hospitals, universities and others, earning more than $100,000 per year. As a consequence, a long list of hydro linemen and others who work considerable overtime are swept onto the list. However, ORNGE’s related companies were not subject to salary publication under the act. Excluded from salary disclosure are many quasi-public entities that are nearly completely funded by government because of loopholes in the legislation that provide justification not to disclose.
Provisions should be expanded to cover all those whose pay is overwhelmingly funded by taxpayers, including doctors whose payments from government are disclosed in other provinces. Arguably, the threshold is too low after 15 years of inflation and should be raised to perhaps $200,000 per year, which would allow a greater focus on managerial pay.
Transparency is a terrific solvent when applied broadly and rigorously. Greater transparency could have alerted the public, the opposition and even the government far earlier that ORNGE was off course. As we enter a period of slower growth in funding for public services and harder choices, the credibility of claims advanced by providers as to their financial needs will be strengthened by greater disclosure.
Competitive bidding: When the government seeks to move a function such as air ambulance to an arms-length organization, there should be competitive bidding. E-Health Ontario provided ample evidence of the additional cost to taxpayers of sole-source contracts. Rules were tightened on contracts but ORNGE, the outsourcing of an entire division, was not put to competitive tender either at the beginning of the process or later on. This was wrong. Where government decides that a private sector or arms-length entity can do a better job, there should be tangible evidence of that improved efficiency. Tendering is well established as the best means of achieving that end.
There are many entities operating at arms-length from government that do so with proper regard for the public interest and the taxpayer dollar. The challenge is to subject all such agencies and arrangements to transparency and competitive bidding that encourages behaviour that is fully in the public interest. A cynic might say that the real problem governments have with competitive tendering is that their friends don’t always win.
ORNGE shakes the confidence of citizens who expect their tax dollars to be treated with greater respect. It also breeds the cynicism that has afflicted other democracies such as Greece. When taxpayers do not have confidence they seek to avoid paying the taxes needed for public services. The real and continuing challenge for government is to prove to the public that their tax dollars are being carefully and wisely spent and the quality of their services has not been compromised.
Michael Decter is a former Ontario deputy minister of health and founding chair of the Health Council of Canada.
Re: Mazza FIRED. Orgne in receivership
Found in the Toronto Star “Employment Wanted” section…
Single, white male, recently unemployed and seeking full time employment. I have dabbled in aviation but it didn't work out very well. Medicine is my passion but I am willing to try anything. My wage expectation is no less than $1.4 million. Spelling is not a strength of mine but I enjoy working with numbers. I am anxiously looking to relocate as soon as possible. My interests include foreign travel, interior decorating, motorcycles, Italian suits, Swiss chocolate and waterskiing. My favourite TV shows are Ornge County Choppers and Undercover Boss.
Single, white male, recently unemployed and seeking full time employment. I have dabbled in aviation but it didn't work out very well. Medicine is my passion but I am willing to try anything. My wage expectation is no less than $1.4 million. Spelling is not a strength of mine but I enjoy working with numbers. I am anxiously looking to relocate as soon as possible. My interests include foreign travel, interior decorating, motorcycles, Italian suits, Swiss chocolate and waterskiing. My favourite TV shows are Ornge County Choppers and Undercover Boss.
Re: Mazza FIRED. Orgne in receivership
Ornge's Sask. report called into question
By Jason Warick, The StarPhoenix February 8, 2012
2
Concerns are being raised about a report used to overhaul Saskatchewan's air ambulance services.
Ornge, the Ontario company that conducted Saskatchewan's air medical services review in 2009, has been embroiled in scandal in recent weeks.
Firings of board members and executives have occurred amid allegations of lavish executive pay, inappropriate payments and questionable safety practices in Ontario. Ornge has for several years been the provider of air ambulance services in Ontario, and the government is scrambling to restore confidence in that province's services.
In Saskatchewan, the operator of a longtime regional air ambulance company said the Ornge scandal should cause officials to reevaluate any advice Ornge provided to this province.
"It's an ugly, ugly mess," said Jamie Palmer, a pilot with the La Loche-based Clearwater Aviation Service in northwest Saskatchewan. "We took the advice of an organization whose priority appears to be making money, not patient care."
Palmer said Ornge's 86page report, the Saskatchewan Air Medical Services Review, cannot be trusted. A major review must be ordered, he said.
An official in the Saskatchewan Ministry of Health called the allegations "concerning," but said the government has no plans to investigate.
Deb Jordan, executive director of acute and emergency services for the Ministry of Health, said Ornge was awarded the contract and fulfilled its obligation. There is no need to review the work Ornge did here, particularly since the Ontario government is investigating.
"All we know is what's reported in the media," Jordan said.
The $127,085 contract to review Saskatchewan's air ambulance services was not tendered, Jordan said. This is not unusual for contracts of this size, she said. Ornge was also one of the only companies with experience in both fixed (plane) and rotary wing (helicopter) aircraft.
She said it was "the only externally contracted report" on Saskatchewan's air medical services.
Jordan said any allegations would be taken into account when future contracts are awarded. She said Ornge has no current involvement with the Saskatchewan government.
An Ornge official said the company "stands by the report" produced for the Saskatchewan government.
One of the allegations surrounds the myriad for profit companies set up by Ornge. On Ornge's website, a page titled "Consulting and Solutions" has been removed, but is viewable through the cached function on search engines. It touts its team of medical and aviation professionals who can provide various services.
The only example mentioned under the "recent consultations" heading is the government of Saskatchewan.
Palmer said it appears Ornge was using its work in Saskatchewan to gain credibility for its other private contracts.
Jordan said the information about Saskatchewan on Ornge's website is "technically" correct and was not a concern.
Gerry Schriemer, vicepresident of the Saskatchewan Emergency Medical Services Association, which represents road ambulance providers, said the Ornge situation is "a mess," but added there's no proof the report was flawed.
The review contained numerous recommendations, from centralizing services to employing helicopters in medical transport.
A helicopter service is scheduled to begin in Regina this spring with another slated for Saskatoon in the fall, Schriemer said.
According to media reports, Ornge's top executives and entire board have been fired after revelations that its CEO received a more than $1-million salary. There are questions about repeated executive retreats and purchases of Jet Skis. Some staff had no background in any relevant field.
Also, one report said some of the aircraft were not inspected before being placed in the field and contained numerous safety hazards.
Read more: http://www.thestarphoenix.com/health/Or ... z1lqye6sdR
By Jason Warick, The StarPhoenix February 8, 2012
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Concerns are being raised about a report used to overhaul Saskatchewan's air ambulance services.
Ornge, the Ontario company that conducted Saskatchewan's air medical services review in 2009, has been embroiled in scandal in recent weeks.
Firings of board members and executives have occurred amid allegations of lavish executive pay, inappropriate payments and questionable safety practices in Ontario. Ornge has for several years been the provider of air ambulance services in Ontario, and the government is scrambling to restore confidence in that province's services.
In Saskatchewan, the operator of a longtime regional air ambulance company said the Ornge scandal should cause officials to reevaluate any advice Ornge provided to this province.
"It's an ugly, ugly mess," said Jamie Palmer, a pilot with the La Loche-based Clearwater Aviation Service in northwest Saskatchewan. "We took the advice of an organization whose priority appears to be making money, not patient care."
Palmer said Ornge's 86page report, the Saskatchewan Air Medical Services Review, cannot be trusted. A major review must be ordered, he said.
An official in the Saskatchewan Ministry of Health called the allegations "concerning," but said the government has no plans to investigate.
Deb Jordan, executive director of acute and emergency services for the Ministry of Health, said Ornge was awarded the contract and fulfilled its obligation. There is no need to review the work Ornge did here, particularly since the Ontario government is investigating.
"All we know is what's reported in the media," Jordan said.
The $127,085 contract to review Saskatchewan's air ambulance services was not tendered, Jordan said. This is not unusual for contracts of this size, she said. Ornge was also one of the only companies with experience in both fixed (plane) and rotary wing (helicopter) aircraft.
She said it was "the only externally contracted report" on Saskatchewan's air medical services.
Jordan said any allegations would be taken into account when future contracts are awarded. She said Ornge has no current involvement with the Saskatchewan government.
An Ornge official said the company "stands by the report" produced for the Saskatchewan government.
One of the allegations surrounds the myriad for profit companies set up by Ornge. On Ornge's website, a page titled "Consulting and Solutions" has been removed, but is viewable through the cached function on search engines. It touts its team of medical and aviation professionals who can provide various services.
The only example mentioned under the "recent consultations" heading is the government of Saskatchewan.
Palmer said it appears Ornge was using its work in Saskatchewan to gain credibility for its other private contracts.
Jordan said the information about Saskatchewan on Ornge's website is "technically" correct and was not a concern.
Gerry Schriemer, vicepresident of the Saskatchewan Emergency Medical Services Association, which represents road ambulance providers, said the Ornge situation is "a mess," but added there's no proof the report was flawed.
The review contained numerous recommendations, from centralizing services to employing helicopters in medical transport.
A helicopter service is scheduled to begin in Regina this spring with another slated for Saskatoon in the fall, Schriemer said.
According to media reports, Ornge's top executives and entire board have been fired after revelations that its CEO received a more than $1-million salary. There are questions about repeated executive retreats and purchases of Jet Skis. Some staff had no background in any relevant field.
Also, one report said some of the aircraft were not inspected before being placed in the field and contained numerous safety hazards.
Read more: http://www.thestarphoenix.com/health/Or ... z1lqye6sdR
Re: Mazza FIRED. Orgne in receivership
http://www.theglobeandmail.com/news/pol ... nt=2328983
Interim CEO of Ornge Ron McKerlie was at the Ornge offices late on Wednesday evening in Mississauga on Jan. 25, 2012. - Interim CEO of Ornge Ron McKerlie was at the Ornge offices late on Wednesday evening in Mississauga on Jan. 25, 2012. | Deborah Baic/The Globe and Mail
Enlarge this image
Ornge to revert to not-for-profit air ambulance co-ordinator
karen howlett
Click here to find out more!
The Ontario government is pledging to turn the province’s embattled Ornge agency back into a not-for-profit air ambulance co-ordinator, but it will continue to operate its own fleet of helicopters and airplanes.
Opposition critics and aviation experts say the government is not going far enough, and are calling on it to unwind Ornge’s aviation operations and allow private companies to operate the air ambulance service. They say a lack of transparency surrounding Ornge’s acquisition of the aircraft that allowed it to compete against private sector players raises questions about whether taxpayers got the best possible deal.
More related to this story
Ontario air-ambulance service wins helicopter flaw fix, cuts ties with CEO
Stewardship Ontario under fire over hazardous-waste removal pricing plan
Fear of scandals must not paralyze Ontario’s health care reform
Ornge operates the helicopters and airplanes through private, for-profit companies. Health Minister Deb Matthews said on Monday that she has asked the newly appointed board of Ornge to wind down the for-profit entities.
“We are absolutely committed to bringing the operations of Ornge back to a not-for-profit organization,” Ms. Matthews said in an interview. “It will take time.”
The province created Ornge as a not-for-profit entity in 2006 to co-ordinate all aspects of the province’s air ambulance services. Ornge then created for-profit entities to compete with the companies that were already providing air ambulance services.
Ornge will continue to own and operate aircraft. Jennifer Tracey, a spokeswoman for Ornge, said the aircraft are owned by Ornge Issuer Trust, and Ornge is its sole beneficiary. For profit entities provide services to Ornge on a “cost recovery basis,” she said.
Ornge bought 11 Sikorsky aircraft and four hangars from Canadian Helicopters in 2009 for $30-million. Lynne Golding, a lawyer at Fasken Martineau, advised Ornge on the deal, which ultimately paved the way for it to take over a contract from the company Canadian Helicopters to operate the province’s helicopter ambulance service. The contract was worth $30-million a year in revenue to Canadian Helicopters.
Canadian Helicopters, which provides air ambulance services in other provinces, including Nova Scotia, had the contract since 1977 and had won it through a competitive bidding process. But when Ornge announced in 2010 that it was taking over the contract, there was no competitive process to determine whether another company could provide the service for less money.
Ron McKerlie, interim chief executive officer of Ornge, said in an email response to The Globe that a competitive tender was not required because Ornge was bringing the helicopter service in-house. A “cost review” showed that Ornge could provide the services for less than Canadian Helicopters, he said. The new board has not examined this cost review, he added.
“The minute someone says there is no competitive bidding process required, red flags should go up,” said Progressive Conservative MPP Frank Klees. “There isn’t a private company that would purchase equipment without a competitive bidding process.”
Aviation sources said they have urged Mr. McKerlie to seek competitive bids for the operations and, in the meantime, allow Canadian Helicopters to resume the contract, which formally expires on March 31. But the sources say the plan is to keep the assets in-house.
The winding down of the for-profit companies began last week with the appointment of a trustee in bankruptcy of two entities, including Ornge Global GP, which gave Ornge the legal authority to terminate the employment of chief executive officer Chris Mazza without severance. He had been on a medical leave since December.
Dr. Mazza recently put his home in Toronto’s Kingsway neighbourhood up for sale. He is asking $1.4-million for the two-storey, three-bedroom house on “one of Toronto’s most spectacular treed crescents,” according to the real-estate listing.
Kelly Long, Dr. Mazza’s partner and the former director of health care relations at Ornge, answered the phone at the house on Monday, but said Dr. Mazza was unable to talk. “You do know he’s on medical leave,” she said.
Editor’s Note: An earlier version of this story incorrectly said Canadian Helicopters provides air ambulance services in B.C. This version has been corrected.
Interim CEO of Ornge Ron McKerlie was at the Ornge offices late on Wednesday evening in Mississauga on Jan. 25, 2012. - Interim CEO of Ornge Ron McKerlie was at the Ornge offices late on Wednesday evening in Mississauga on Jan. 25, 2012. | Deborah Baic/The Globe and Mail
Enlarge this image
Ornge to revert to not-for-profit air ambulance co-ordinator
karen howlett
Click here to find out more!
The Ontario government is pledging to turn the province’s embattled Ornge agency back into a not-for-profit air ambulance co-ordinator, but it will continue to operate its own fleet of helicopters and airplanes.
Opposition critics and aviation experts say the government is not going far enough, and are calling on it to unwind Ornge’s aviation operations and allow private companies to operate the air ambulance service. They say a lack of transparency surrounding Ornge’s acquisition of the aircraft that allowed it to compete against private sector players raises questions about whether taxpayers got the best possible deal.
More related to this story
Ontario air-ambulance service wins helicopter flaw fix, cuts ties with CEO
Stewardship Ontario under fire over hazardous-waste removal pricing plan
Fear of scandals must not paralyze Ontario’s health care reform
Ornge operates the helicopters and airplanes through private, for-profit companies. Health Minister Deb Matthews said on Monday that she has asked the newly appointed board of Ornge to wind down the for-profit entities.
“We are absolutely committed to bringing the operations of Ornge back to a not-for-profit organization,” Ms. Matthews said in an interview. “It will take time.”
The province created Ornge as a not-for-profit entity in 2006 to co-ordinate all aspects of the province’s air ambulance services. Ornge then created for-profit entities to compete with the companies that were already providing air ambulance services.
Ornge will continue to own and operate aircraft. Jennifer Tracey, a spokeswoman for Ornge, said the aircraft are owned by Ornge Issuer Trust, and Ornge is its sole beneficiary. For profit entities provide services to Ornge on a “cost recovery basis,” she said.
Ornge bought 11 Sikorsky aircraft and four hangars from Canadian Helicopters in 2009 for $30-million. Lynne Golding, a lawyer at Fasken Martineau, advised Ornge on the deal, which ultimately paved the way for it to take over a contract from the company Canadian Helicopters to operate the province’s helicopter ambulance service. The contract was worth $30-million a year in revenue to Canadian Helicopters.
Canadian Helicopters, which provides air ambulance services in other provinces, including Nova Scotia, had the contract since 1977 and had won it through a competitive bidding process. But when Ornge announced in 2010 that it was taking over the contract, there was no competitive process to determine whether another company could provide the service for less money.
Ron McKerlie, interim chief executive officer of Ornge, said in an email response to The Globe that a competitive tender was not required because Ornge was bringing the helicopter service in-house. A “cost review” showed that Ornge could provide the services for less than Canadian Helicopters, he said. The new board has not examined this cost review, he added.
“The minute someone says there is no competitive bidding process required, red flags should go up,” said Progressive Conservative MPP Frank Klees. “There isn’t a private company that would purchase equipment without a competitive bidding process.”
Aviation sources said they have urged Mr. McKerlie to seek competitive bids for the operations and, in the meantime, allow Canadian Helicopters to resume the contract, which formally expires on March 31. But the sources say the plan is to keep the assets in-house.
The winding down of the for-profit companies began last week with the appointment of a trustee in bankruptcy of two entities, including Ornge Global GP, which gave Ornge the legal authority to terminate the employment of chief executive officer Chris Mazza without severance. He had been on a medical leave since December.
Dr. Mazza recently put his home in Toronto’s Kingsway neighbourhood up for sale. He is asking $1.4-million for the two-storey, three-bedroom house on “one of Toronto’s most spectacular treed crescents,” according to the real-estate listing.
Kelly Long, Dr. Mazza’s partner and the former director of health care relations at Ornge, answered the phone at the house on Monday, but said Dr. Mazza was unable to talk. “You do know he’s on medical leave,” she said.
Editor’s Note: An earlier version of this story incorrectly said Canadian Helicopters provides air ambulance services in B.C. This version has been corrected.
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markymarkl
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Re: Mazza FIRED. Orgne in receivership
Kelly Long, Dr. Mazza’s partner and the former director of health care relations at Ornge, answered the phone at the house on Monday, but said Dr. Mazza was unable to talk. “You do know he’s on medical leave,” she said.
I was under the impression he was fired and not on the payroll?????
I was under the impression he was fired and not on the payroll?????
Re: Mazza FIRED. Orgne in receivership
The actual front page of the Toronto Star re: http://www.thestar.com/news/canada/arti ... nd-schemes
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Clearwater
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Re: Mazza FIRED. Orgne in receivership
Ornge trying to recoup $1.2-million in loans given to ex-CEO Mazza
karen howlett
Globe and Mail Update
Published Sunday, Feb. 12, 2012 6:29PM EST
Ontario’s embattled air-ambulance service is taking steps to recover loans totalling $1.2-million made to its former chief executive officer.
Chris Mazza, who was terminated as chief executive officer 10 days ago, received a $500,000 housing loan in July, 2010, from Ornge, an official close to the air-ambulance service confirmed. As well, he received two loans in 2011 totalling $700,000 from a for-profit corporation created by the publicly funded Ornge, the official said.
An air ambulance helicopter lands at Toronto Island airport on Jan. 27, 2012.
Background
Explainer: Ontario's air ambulance controversy
Dr. Mazza used the housing loan to buy a house in August, 2010, for $735,000, real-estate records show. He took out a mortgage in the amount of $588,000 the same day, the records show. That same year, he also took out a mortgage for $749,000 on a cottage he owns in Muskoka.
The house on a treed crescent in Etobicoke was put up for sale this month for $1.4-million.
The loans have been “a real focus” for both Ron McKerlie, the interim chief executive officer of Ornge, and forensic auditors who are poring over financial records to determine whether taxpayers’ money was used for a series of private, for-profit companies created by Ornge, the official said.
“The new leadership is doing everything they can through legal means to recover this money,” she said.
A source close to Dr. Mazza said the loans were part of his compensation package, and were in recognition of incentives he had earned over four years. He added that the loans were an initiative of the board of directors and approved by them.
The official close to Ornge acknowledged that Rainer Beltzner, former chairman of Ornge, was “aware” of the loans. Mr. Beltzner and the rest of the board resigned last month.
A man who answered the phone at Mr. Beltzner’s residence on Sunday said he was not available to talk.
The corporate entity that made the two loans totalling $700,000 to Dr. Mazza is now insolvent. The trustee in bankruptcy filed a financing statement last Friday to ensure that Ornge’s claim against Dr. Mazza has priority over any of his other creditors, according to a copy of a document filed with the Personal Property Security Registration System obtained by The Globe and Mail.
The registration system is a public database that shows whether personal property in Ontario has been used to secure a loan or is subject to a lien.
The official close to Ornge said the air-ambulance service is also taking “legal action” to recover the $500,000 housing loan.
The source close to Dr. Mazza said the actions could prompt other creditors of his to also try to recover their loans.
“It’s all very punitive,” he said.
The trustee filed the financing statement one week after Ornge Global GP Inc. was declared bankrupt. The bankruptcy gave the publicly funded Ornge the legal authority to terminate Dr. Mazza’s employment without severance. He had been on medical leave since December, and remained on the payroll at Ornge Global, earning $1.4-million a year.
The government has ordered the newly appointed board to wind down for-profit entities that it had created to generate revenue by trading on the expertise of the taxpayer-funded air-ambulance service. These entities were to receive 97 per cent of the revenue, leaving just 3 per cent for the air-ambulance service, according to a copy of a briefing document prepared by Mr. Beltzner.
karen howlett
Globe and Mail Update
Published Sunday, Feb. 12, 2012 6:29PM EST
Ontario’s embattled air-ambulance service is taking steps to recover loans totalling $1.2-million made to its former chief executive officer.
Chris Mazza, who was terminated as chief executive officer 10 days ago, received a $500,000 housing loan in July, 2010, from Ornge, an official close to the air-ambulance service confirmed. As well, he received two loans in 2011 totalling $700,000 from a for-profit corporation created by the publicly funded Ornge, the official said.
An air ambulance helicopter lands at Toronto Island airport on Jan. 27, 2012.
Background
Explainer: Ontario's air ambulance controversy
Dr. Mazza used the housing loan to buy a house in August, 2010, for $735,000, real-estate records show. He took out a mortgage in the amount of $588,000 the same day, the records show. That same year, he also took out a mortgage for $749,000 on a cottage he owns in Muskoka.
The house on a treed crescent in Etobicoke was put up for sale this month for $1.4-million.
The loans have been “a real focus” for both Ron McKerlie, the interim chief executive officer of Ornge, and forensic auditors who are poring over financial records to determine whether taxpayers’ money was used for a series of private, for-profit companies created by Ornge, the official said.
“The new leadership is doing everything they can through legal means to recover this money,” she said.
A source close to Dr. Mazza said the loans were part of his compensation package, and were in recognition of incentives he had earned over four years. He added that the loans were an initiative of the board of directors and approved by them.
The official close to Ornge acknowledged that Rainer Beltzner, former chairman of Ornge, was “aware” of the loans. Mr. Beltzner and the rest of the board resigned last month.
A man who answered the phone at Mr. Beltzner’s residence on Sunday said he was not available to talk.
The corporate entity that made the two loans totalling $700,000 to Dr. Mazza is now insolvent. The trustee in bankruptcy filed a financing statement last Friday to ensure that Ornge’s claim against Dr. Mazza has priority over any of his other creditors, according to a copy of a document filed with the Personal Property Security Registration System obtained by The Globe and Mail.
The registration system is a public database that shows whether personal property in Ontario has been used to secure a loan or is subject to a lien.
The official close to Ornge said the air-ambulance service is also taking “legal action” to recover the $500,000 housing loan.
The source close to Dr. Mazza said the actions could prompt other creditors of his to also try to recover their loans.
“It’s all very punitive,” he said.
The trustee filed the financing statement one week after Ornge Global GP Inc. was declared bankrupt. The bankruptcy gave the publicly funded Ornge the legal authority to terminate Dr. Mazza’s employment without severance. He had been on medical leave since December, and remained on the payroll at Ornge Global, earning $1.4-million a year.
The government has ordered the newly appointed board to wind down for-profit entities that it had created to generate revenue by trading on the expertise of the taxpayer-funded air-ambulance service. These entities were to receive 97 per cent of the revenue, leaving just 3 per cent for the air-ambulance service, according to a copy of a briefing document prepared by Mr. Beltzner.
Re: Mazza FIRED. Orgne in receivership
ORNGE’s Chris Mazza got $1.2 million on top of pay
Using money lent by ORNGE, Dr. Chris Mazza bought a home on Blackdown Cres. in 2010 for $735,000 . He had it rebuilt, and it was listed for sale two weeks ago at $1.4 million.
Using money lent by ORNGE, Dr. Chris Mazza bought a home on Blackdown Cres. in 2010 for $735,000 . He had it rebuilt, and it was listed for sale two weeks ago at $1.4 million.
DALE BRAZAO/TORONTO STAR
Kevin Donovan Staff Reporter
ORNGE gave $1.2 million in loans (one for a house), plus a big cash advance, to founder Dr. Chris Mazza over the past 18 months.
It now wants the money back. In a letter delivered last week to the Etobicoke home that Mazza recently built and now has listed for sale, ORNGE has demanded immediate repayment.
The two loans and an advance against a bonus are on top of Mazza’s annual $1.4 million salary.
Forensic investigators for the province are paying particular attention to the payments, a source said. All ORNGE documents related to the payments have been turned over to the 43-person investigative team.
ORNGE is Ontario’s air ambulance service. It receives $150 million each year to conduct emergency airlifts and to move patients between hospitals.
An ongoing investigation by the Toronto Star began in December with stories that first described ORNGE secrecy (most executive salaries were shielded from the public). Then the Star revealed Mazza was paid $1.4 million a year (for the year ended March 31, 2011). Information recently obtained by the Star shows that more ORNGE dollars were going Mazza’s way.
A source confirmed the decisions to provide loans and cash advances to Mazza were approved by ORNGE’s board, chaired at the time by Rainer Beltzner.
Beltzner has not been available for interviews on matters related to ORNGE’s finances over the past two months. In a statement when his old ORNGE board resigned in January, he said, “ORNGE has taken immediate steps to begin a renewal process and regain the trust of staff, patients, and the people of Ontario.”
Also involved in the approval process for the Mazza payments was former ORNGE executive Maria Renzella, who has also not responded to interview requests.
Both Renzella and Beltzner were brought into ORNGE by Mazza, former executives say. Renzella received funding from ORNGE for a $110,000 executive MBA, with some of her studies in Europe.
Some of the payments to Mazza relate to a home on Blackdown Cres. in Etobicoke that Mazza purchased for $735,000 on Aug. 5, 2010.
Two weeks before the purchase, on July 20, 2010 the for-profit company ORNGE Peel gave Mazza a $500,000 housing loan. Mazza is the majority shareholder of ORNGE Peel, which later became ORNGE Global.
The term of the loan was five years. Auditors have found no evidence that interest was charged and no evidence that Mazza has made any repayment of interest and principal.
Immediately after the purchase, Mazza applied to the city of Toronto for a building permit to demolish the existing structure down to the foundation. He constructed a beautiful three-bedroom, four-bathroom home. Two weeks ago it went on sale for a price of $1,425,000.
According to the real estate listing, “no words can adequately describe this home.”
“It is absolutely magnificent, and situated on one of Toronto’s most spectacular treed crescents! Completely rebuilt to the foundation, designer finishes throughout with attention to every detail! Caesarstone counters, hickory floors, fabulous wall angles and ceilings all exquisitely in the proper proportions. Sun-filled and beautiful views everywhere! Even to die for garage!”
A property search reveals the home briefly had a $588,000 mortgage from Royal Bank but that mortgage was discharged in April, 2011.
Investigators view the home as a potential asset, a source told the Star.
In the spring of 2011, ORNGE Global gave Mazza a $250,000 advance on his 2011-2012 fiscal year bonus for securing investors for the renamed ORNGE Global.
In looking at the advance for securing investors, investigators have determined that no investors were secured by ORNGE Global. ORNGE officials have confirmed this to the Star.
The Star does not know what the anticipated bonus and salary for the 2011 fiscal year was supposed to be.
Mazza was terminated from ORNGE last month when the for-profit company that employed him as a consultant was declared bankrupt.
The bonus advance came shortly after Mazza and a tight group of executives and board members moved forward last spring with plans for ORNGE Global, which they stated was a for-profit company that would “leverage” the physical and intellectual assets of the non-profit, Ontario-funded ORNGE air ambulance service.
One executive who is still there, Tom Lepine, recently disclosed to the Star that Mazza gave him a $50,000 consulting fee on top of his $282,000 salary for helping with the for-profit business.
The Global company hoped to provide medical and air ambulance services to high net-worth clients but never got off the ground.
An ORNGE accountant who tried to blow the whistle on excessive spending in 2008 said the publicly funded ORNGE handed out money “like water.”
The third Mazza payment being investigated is a $450,000 loan made in the summer of 2011, which documents now in possession of the province show was “secured” by shares in a company called ORNGE Global Management Inc. According to documents the Star has, that is one of the for-profit companies that Mazza controls. (It is now defunct.)
As with the first loan, there is no evidence of an interest rate or that any repayments of interest or principal have been made.
ORNGE’s new boss Ron McKerlie said he was not able to confirm or deny the Star’s information.
However, he said that “if ORNGE did loan any money to its former employees, ORNGE would pursue its legal remedies to collect any debts which may be owing to the organization.”
Kevin Donovan can be reached at (416) 312-3503 or kdonovan@thestar.ca
Using money lent by ORNGE, Dr. Chris Mazza bought a home on Blackdown Cres. in 2010 for $735,000 . He had it rebuilt, and it was listed for sale two weeks ago at $1.4 million.
Using money lent by ORNGE, Dr. Chris Mazza bought a home on Blackdown Cres. in 2010 for $735,000 . He had it rebuilt, and it was listed for sale two weeks ago at $1.4 million.
DALE BRAZAO/TORONTO STAR
Kevin Donovan Staff Reporter
ORNGE gave $1.2 million in loans (one for a house), plus a big cash advance, to founder Dr. Chris Mazza over the past 18 months.
It now wants the money back. In a letter delivered last week to the Etobicoke home that Mazza recently built and now has listed for sale, ORNGE has demanded immediate repayment.
The two loans and an advance against a bonus are on top of Mazza’s annual $1.4 million salary.
Forensic investigators for the province are paying particular attention to the payments, a source said. All ORNGE documents related to the payments have been turned over to the 43-person investigative team.
ORNGE is Ontario’s air ambulance service. It receives $150 million each year to conduct emergency airlifts and to move patients between hospitals.
An ongoing investigation by the Toronto Star began in December with stories that first described ORNGE secrecy (most executive salaries were shielded from the public). Then the Star revealed Mazza was paid $1.4 million a year (for the year ended March 31, 2011). Information recently obtained by the Star shows that more ORNGE dollars were going Mazza’s way.
A source confirmed the decisions to provide loans and cash advances to Mazza were approved by ORNGE’s board, chaired at the time by Rainer Beltzner.
Beltzner has not been available for interviews on matters related to ORNGE’s finances over the past two months. In a statement when his old ORNGE board resigned in January, he said, “ORNGE has taken immediate steps to begin a renewal process and regain the trust of staff, patients, and the people of Ontario.”
Also involved in the approval process for the Mazza payments was former ORNGE executive Maria Renzella, who has also not responded to interview requests.
Both Renzella and Beltzner were brought into ORNGE by Mazza, former executives say. Renzella received funding from ORNGE for a $110,000 executive MBA, with some of her studies in Europe.
Some of the payments to Mazza relate to a home on Blackdown Cres. in Etobicoke that Mazza purchased for $735,000 on Aug. 5, 2010.
Two weeks before the purchase, on July 20, 2010 the for-profit company ORNGE Peel gave Mazza a $500,000 housing loan. Mazza is the majority shareholder of ORNGE Peel, which later became ORNGE Global.
The term of the loan was five years. Auditors have found no evidence that interest was charged and no evidence that Mazza has made any repayment of interest and principal.
Immediately after the purchase, Mazza applied to the city of Toronto for a building permit to demolish the existing structure down to the foundation. He constructed a beautiful three-bedroom, four-bathroom home. Two weeks ago it went on sale for a price of $1,425,000.
According to the real estate listing, “no words can adequately describe this home.”
“It is absolutely magnificent, and situated on one of Toronto’s most spectacular treed crescents! Completely rebuilt to the foundation, designer finishes throughout with attention to every detail! Caesarstone counters, hickory floors, fabulous wall angles and ceilings all exquisitely in the proper proportions. Sun-filled and beautiful views everywhere! Even to die for garage!”
A property search reveals the home briefly had a $588,000 mortgage from Royal Bank but that mortgage was discharged in April, 2011.
Investigators view the home as a potential asset, a source told the Star.
In the spring of 2011, ORNGE Global gave Mazza a $250,000 advance on his 2011-2012 fiscal year bonus for securing investors for the renamed ORNGE Global.
In looking at the advance for securing investors, investigators have determined that no investors were secured by ORNGE Global. ORNGE officials have confirmed this to the Star.
The Star does not know what the anticipated bonus and salary for the 2011 fiscal year was supposed to be.
Mazza was terminated from ORNGE last month when the for-profit company that employed him as a consultant was declared bankrupt.
The bonus advance came shortly after Mazza and a tight group of executives and board members moved forward last spring with plans for ORNGE Global, which they stated was a for-profit company that would “leverage” the physical and intellectual assets of the non-profit, Ontario-funded ORNGE air ambulance service.
One executive who is still there, Tom Lepine, recently disclosed to the Star that Mazza gave him a $50,000 consulting fee on top of his $282,000 salary for helping with the for-profit business.
The Global company hoped to provide medical and air ambulance services to high net-worth clients but never got off the ground.
An ORNGE accountant who tried to blow the whistle on excessive spending in 2008 said the publicly funded ORNGE handed out money “like water.”
The third Mazza payment being investigated is a $450,000 loan made in the summer of 2011, which documents now in possession of the province show was “secured” by shares in a company called ORNGE Global Management Inc. According to documents the Star has, that is one of the for-profit companies that Mazza controls. (It is now defunct.)
As with the first loan, there is no evidence of an interest rate or that any repayments of interest or principal have been made.
ORNGE’s new boss Ron McKerlie said he was not able to confirm or deny the Star’s information.
However, he said that “if ORNGE did loan any money to its former employees, ORNGE would pursue its legal remedies to collect any debts which may be owing to the organization.”
Kevin Donovan can be reached at (416) 312-3503 or kdonovan@thestar.ca
Re: Mazza FIRED. Orgne in receivership
ORNGE founder Chris Mazza used air ambulance expertise for own business interests
Published On Mon Feb 13 2012
ORNGE founder Dr. Chris Mazza’s company struck a personal deal in January 2011 to use the publicly funded air ambulance service for his own business interests, a key document shows.
Kevin Donovan Staff Reporter
A company owned by ORNGE founder Dr. Chris Mazza struck a personal deal in January 2011 to use the publicly funded air ambulance service for his own business interests, a key document shows.
In a flurry of activity, Mazza and almost all of his hand-picked executives at the non-profit ORNGE left the non-profit air ambulance service on Jan. 1 that year and began working for one of a series of personally owned consulting companies that were paid, often exorbitantly, with taxpayers’ money.
The Star has obtained a document that shows how, on the same day, a Mazza-led partnership — ORNGE Global Management Inc. — entered into an agreement to make use of many aspects of the air ambulance service that Ontarians pay $150 million a year to support.
“The partnership has been founded and organized to develop and operate businesses utilizing, among other things, intellectual property to be obtained under licence from ORNGE,” states a shareholder agreement between Mazza, personally, and ORNGE Global Management Inc.
Health ministry officials say the problem with this deal was that a taxpayer-funded asset, built with the expertise of paramedics, pilots and provincial employees, was being used for private gain. Plans for businesses included a high-end medical insurance plan for international executives.
In January 2011, Mazza was listed as the president of the Global company and sole shareholder. His trusted lieutenant, Maria Renzella, was an executive of the company. The document indicated that Mazza would eventually sell some of his shares to other parties, but no identities were given in the document, prepared by law firm Faskin Martineau.
The for-profit companies were shut down last month and Mazza and Renzella lost their jobs.
Health Minister Deb Matthews told the Star Monday that her ministry was told by ORNGE and its lawyer in a meeting later that January that they were powerless to prevent the air ambulance service from setting up for-profit companies. Besides, she said, the province was told money would flow to Ontario as a result. As the Star’s investigation has revealed, the deal called for Ontario taxpayers to receive just 3 per cent of revenues and Mazza and partners to get the lion’s share.
A 32-person forensic audit team working for the provincial finance ministry is probing to see if there has been an abuse of taxpayer’s dollars.
ORNGE and its predecessor, a provincial health ministry agency, have long been recognized as a leader in transport medicine. Paramedics and pilots, many working for small air ambulance companies, spent years developing the system with ministry officials.
In 2005, then health minister George Smitherman created ORNGE. In what has been an ongoing duel between health minister old and new, Matthews said yesterday that the root of the problem traces back to 2005.
“Really, the intellectual property was given to ORNGE in 2005,” Matthews said, referring to the expertise ORNGE has acquired.
The document the Star has recently obtained shows that the intellectual property was then shifted to Mazza and partners in 2011.
Smitherman is on record saying the service he created was excellent and he has blamed succeeding health ministers for not keeping a watchful eye on Mazza’s empire as it grew.
Published On Mon Feb 13 2012
ORNGE founder Dr. Chris Mazza’s company struck a personal deal in January 2011 to use the publicly funded air ambulance service for his own business interests, a key document shows.
Kevin Donovan Staff Reporter
A company owned by ORNGE founder Dr. Chris Mazza struck a personal deal in January 2011 to use the publicly funded air ambulance service for his own business interests, a key document shows.
In a flurry of activity, Mazza and almost all of his hand-picked executives at the non-profit ORNGE left the non-profit air ambulance service on Jan. 1 that year and began working for one of a series of personally owned consulting companies that were paid, often exorbitantly, with taxpayers’ money.
The Star has obtained a document that shows how, on the same day, a Mazza-led partnership — ORNGE Global Management Inc. — entered into an agreement to make use of many aspects of the air ambulance service that Ontarians pay $150 million a year to support.
“The partnership has been founded and organized to develop and operate businesses utilizing, among other things, intellectual property to be obtained under licence from ORNGE,” states a shareholder agreement between Mazza, personally, and ORNGE Global Management Inc.
Health ministry officials say the problem with this deal was that a taxpayer-funded asset, built with the expertise of paramedics, pilots and provincial employees, was being used for private gain. Plans for businesses included a high-end medical insurance plan for international executives.
In January 2011, Mazza was listed as the president of the Global company and sole shareholder. His trusted lieutenant, Maria Renzella, was an executive of the company. The document indicated that Mazza would eventually sell some of his shares to other parties, but no identities were given in the document, prepared by law firm Faskin Martineau.
The for-profit companies were shut down last month and Mazza and Renzella lost their jobs.
Health Minister Deb Matthews told the Star Monday that her ministry was told by ORNGE and its lawyer in a meeting later that January that they were powerless to prevent the air ambulance service from setting up for-profit companies. Besides, she said, the province was told money would flow to Ontario as a result. As the Star’s investigation has revealed, the deal called for Ontario taxpayers to receive just 3 per cent of revenues and Mazza and partners to get the lion’s share.
A 32-person forensic audit team working for the provincial finance ministry is probing to see if there has been an abuse of taxpayer’s dollars.
ORNGE and its predecessor, a provincial health ministry agency, have long been recognized as a leader in transport medicine. Paramedics and pilots, many working for small air ambulance companies, spent years developing the system with ministry officials.
In 2005, then health minister George Smitherman created ORNGE. In what has been an ongoing duel between health minister old and new, Matthews said yesterday that the root of the problem traces back to 2005.
“Really, the intellectual property was given to ORNGE in 2005,” Matthews said, referring to the expertise ORNGE has acquired.
The document the Star has recently obtained shows that the intellectual property was then shifted to Mazza and partners in 2011.
Smitherman is on record saying the service he created was excellent and he has blamed succeeding health ministers for not keeping a watchful eye on Mazza’s empire as it grew.
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orngecrush
- Rank 1
- Posts: 20
- Joined: Tue Feb 14, 2012 12:18 pm
Re: Mazza FIRED. Orgne in receivership
North Shore ..
On Jan 30th you said you'd like to know Ornge's mission statement. Well, using the Wayback machine here's the vision, mission and value statements from Ornge's Feb 2007 web site:
Ornge Vision
- Propelling life with innovation.
Ornge Mission
- Patient care with innovative transport medicine.
- Ornge, a non-profit organization, was appointed in July 2005 by the province of Ontario Ministry of Health to co-ordinate all aspects of Ontario’s air ambulance system and began operations January 2006.
- Our program began in 1977 with a single rotor-wing aircraft based in Toronto. Today, with 33 aircraft stationed at 26 bases across the province, Ornge operates the largest and most sophisticated program of aero-medical transport in North America. Over 17,000 admissions are dispatched annually making Ornge North America's largest operator in the field of transport medicine.
- Regional medical directors representing each geographic area of the province are part of the Ornge Medical Board responsible for all decisions and standards relating to patient care.
- Ornge operations include a communications centre, ongoing education, quality improvement programming and information technology.
Ornge Values
- Innovation
-- Steadfast commitment to advancing the frontiers of transport medicine.
- Compassion
-- Demonstrated identification with patient care and service at all levels of the organization.
- Collaboration
-- Working together internally and externally to deliver on the promise.
On Jan 30th you said you'd like to know Ornge's mission statement. Well, using the Wayback machine here's the vision, mission and value statements from Ornge's Feb 2007 web site:
Ornge Vision
- Propelling life with innovation.
Ornge Mission
- Patient care with innovative transport medicine.
- Ornge, a non-profit organization, was appointed in July 2005 by the province of Ontario Ministry of Health to co-ordinate all aspects of Ontario’s air ambulance system and began operations January 2006.
- Our program began in 1977 with a single rotor-wing aircraft based in Toronto. Today, with 33 aircraft stationed at 26 bases across the province, Ornge operates the largest and most sophisticated program of aero-medical transport in North America. Over 17,000 admissions are dispatched annually making Ornge North America's largest operator in the field of transport medicine.
- Regional medical directors representing each geographic area of the province are part of the Ornge Medical Board responsible for all decisions and standards relating to patient care.
- Ornge operations include a communications centre, ongoing education, quality improvement programming and information technology.
Ornge Values
- Innovation
-- Steadfast commitment to advancing the frontiers of transport medicine.
- Compassion
-- Demonstrated identification with patient care and service at all levels of the organization.
- Collaboration
-- Working together internally and externally to deliver on the promise.
Re: Mazza FIRED. Orgne in receivership
In the Globe today....
Ex-Ornge director describes 'stunning' request for her resignation
karen howlett
From Wednesday's Globe and Mail
Published Wednesday, Feb. 15, 2012 3:00AM EST
Last updated Wednesday, Feb. 15, 2012 7:36AM EST
A board member of Ontario’s air ambulance service says that the chairman of Ornge asked her to step down in 2006 after she questioned plans to use taxpayers’ money for a charity.
Rainer Beltzner delivered the news to Enola Stoyle over lunch a few days after the board met to discuss the charity Ornge was creating. Ms. Stoyle said he informed her that Chris Mazza, CEO at the time, was “very upset” that she did not support his plans for the charity and she had to leave.
More related to this story
• Criminal probe of Ornge needed, Ontario opposition says
• Ornge launches legal action to recover Mazza’s loans
• Mazza’s dreams for air ambulance service lie in tatters
“It was quite stunning to me,” Ms. Stoyle told The Globe and Mail on Tuesday.
Ms. Stoyle, now associate director of a graduate program in management and accounting at the University of Toronto, said Dr. Mazza was the kind of charismatic leader who could get those around him to share in his vision at Ornge. She was excited, she said, to be part of an organization that was responsible for all aspects of Ontario’s air ambulance service, and never imagined that she would be shown the door just for asking how taxpayers’ money could be used for a charity.
Ms. Stoyle was not alone. Another director also upset Dr. Mazza by asking questions. Shanon Grauer, a corporate lawyer at McCarthy Tétrault, was not invited to stay on after her two-year term on the board expired in 2007, sources say.
Ms. Grauer declined to comment when contacted by The Globe. But a source close to the situation said Ms. Grauer also learned over lunch with Mr. Beltzner that her term would not be renewed.
Mr. Beltzner did not return a telephone message left at his home on Tuesday evening. He stepped down as chairman last month, after Health Minister Deb Matthews replaced the entire board.
What Ms. Stoyle was concerned about was Dr. Mazza’s plan to create an injury-prevention program for youths. The inspiration for this was born out of his own family tragedy: His teenage son, Josh, died in March, 2006, of severe head injuries sustained in a skiing accident.
Ms. Stoyle said she questioned Dr. Mazza’s plans to use taxpayers’ money to finance the charity. Ornge receives $150-million a year from the province to co-ordinate all aspects of the medical transport service.
“I was concerned that this did not fall within the mandate of the air ambulance service,” she said.
The charity, known as J Smarts, eventually got off the ground. In a memorandum to Dr. Mazza in June, 2007, Alfred Apps, a lawyer at Fasken Martineau DuMoulin and Ornge’s legal adviser wrote that Ornge could set up the charity as a not-for-profit corporation. He said keeping the investment in J Smarts to less than 1 per cent of Ornge’s revenues would not violate its agreement with the province, according to a copy of the memo obtained by The Globe.
Mr. Apps did not respond to e-mail messages. Stephen Hastings, a spokesman at Fasken, said the firm is unable to comment as the matter relates to client confidentiality issues. A source close to Dr. Mazza has said the former Ornge CEO is on medication and unable to comment.
J Smarts operated out of Ornge’s headquarters in Mississauga until last month, when interim CEO Ron McKerlie shut it down. A team of 32 forensic auditors from the Finance Ministry is poring over Ornge’s financial records to determine whether taxpayers’ money was used for private gain.
Dr. Mazza’s employment was terminated two weeks ago, and Ornge is taking legal action to recover $1.2-million in loans made to him.
As for Mr. Apps, he is resigning from Fasken Martineau after 23 years at the firm, and joining Wildeboer Apps, where his brother, Eric, also practices.
Alfred Apps said in an email to The Globe last Friday that his departure has nothing to do with the problems at Ornge.
“It has been in the works for months,” he said.
Ex-Ornge director describes 'stunning' request for her resignation
karen howlett
From Wednesday's Globe and Mail
Published Wednesday, Feb. 15, 2012 3:00AM EST
Last updated Wednesday, Feb. 15, 2012 7:36AM EST
A board member of Ontario’s air ambulance service says that the chairman of Ornge asked her to step down in 2006 after she questioned plans to use taxpayers’ money for a charity.
Rainer Beltzner delivered the news to Enola Stoyle over lunch a few days after the board met to discuss the charity Ornge was creating. Ms. Stoyle said he informed her that Chris Mazza, CEO at the time, was “very upset” that she did not support his plans for the charity and she had to leave.
More related to this story
• Criminal probe of Ornge needed, Ontario opposition says
• Ornge launches legal action to recover Mazza’s loans
• Mazza’s dreams for air ambulance service lie in tatters
“It was quite stunning to me,” Ms. Stoyle told The Globe and Mail on Tuesday.
Ms. Stoyle, now associate director of a graduate program in management and accounting at the University of Toronto, said Dr. Mazza was the kind of charismatic leader who could get those around him to share in his vision at Ornge. She was excited, she said, to be part of an organization that was responsible for all aspects of Ontario’s air ambulance service, and never imagined that she would be shown the door just for asking how taxpayers’ money could be used for a charity.
Ms. Stoyle was not alone. Another director also upset Dr. Mazza by asking questions. Shanon Grauer, a corporate lawyer at McCarthy Tétrault, was not invited to stay on after her two-year term on the board expired in 2007, sources say.
Ms. Grauer declined to comment when contacted by The Globe. But a source close to the situation said Ms. Grauer also learned over lunch with Mr. Beltzner that her term would not be renewed.
Mr. Beltzner did not return a telephone message left at his home on Tuesday evening. He stepped down as chairman last month, after Health Minister Deb Matthews replaced the entire board.
What Ms. Stoyle was concerned about was Dr. Mazza’s plan to create an injury-prevention program for youths. The inspiration for this was born out of his own family tragedy: His teenage son, Josh, died in March, 2006, of severe head injuries sustained in a skiing accident.
Ms. Stoyle said she questioned Dr. Mazza’s plans to use taxpayers’ money to finance the charity. Ornge receives $150-million a year from the province to co-ordinate all aspects of the medical transport service.
“I was concerned that this did not fall within the mandate of the air ambulance service,” she said.
The charity, known as J Smarts, eventually got off the ground. In a memorandum to Dr. Mazza in June, 2007, Alfred Apps, a lawyer at Fasken Martineau DuMoulin and Ornge’s legal adviser wrote that Ornge could set up the charity as a not-for-profit corporation. He said keeping the investment in J Smarts to less than 1 per cent of Ornge’s revenues would not violate its agreement with the province, according to a copy of the memo obtained by The Globe.
Mr. Apps did not respond to e-mail messages. Stephen Hastings, a spokesman at Fasken, said the firm is unable to comment as the matter relates to client confidentiality issues. A source close to Dr. Mazza has said the former Ornge CEO is on medication and unable to comment.
J Smarts operated out of Ornge’s headquarters in Mississauga until last month, when interim CEO Ron McKerlie shut it down. A team of 32 forensic auditors from the Finance Ministry is poring over Ornge’s financial records to determine whether taxpayers’ money was used for private gain.
Dr. Mazza’s employment was terminated two weeks ago, and Ornge is taking legal action to recover $1.2-million in loans made to him.
As for Mr. Apps, he is resigning from Fasken Martineau after 23 years at the firm, and joining Wildeboer Apps, where his brother, Eric, also practices.
Alfred Apps said in an email to The Globe last Friday that his departure has nothing to do with the problems at Ornge.
“It has been in the works for months,” he said.
Re: Mazza FIRED. Orgne in receivership
LePine Gone and OPP are Called IN.
ORNGE finances to be investigated by OPP
A series of stories in the Star detailed how taxpayers' money was behind a spending spree that included high salaries, payments from an Italian helicopter firm and loans made to former boss Dr. Chris Mazza.
Kevin Donovan Staff Reporter
The Ontario Provincial Police have been called in to investigate “financial irregularities” at ORNGE.
Health minister Deb Matthews made the decision to call in police after a draft copy of the ministry of finance's investigative report was sent to her late Wednesday, a ministry official confirms.
Thirty-two investigators with finance have been pouring over ORNGE files for a month. They were sent in after a series of stories in the Star detailing how taxpayers money was behind a spending spree that included high salaries, payments from an Italian helicopter firm and loans made to former boss Dr. Chris Mazza.
Earlier Thursday morning, a paramedic who rose through the ranks to become chief operating officer, left the air ambulance service.
In a note to staff, interim ORNGE boss Ron McKerlie praised Tom Lepine for his years of service.
“I want to personally thank Tom for his years of service and dedication to the air ambulance program and his support to me over the past four weeks as we have worked together,” McKerlie wrote.
“He has had an important role in the air ambulance program in Ontario dating back to the pre-Ornge days as a front-line flight paramedic, educator and manager.”
Lepine has been blamed by many front-line paramedics for standing by and allowing Mazza to make decisions that landed the service in hot water over the past two months.
As one of ORNGE’s top officials he presided over such things as the outfitting of aircraft with improper medical interiors and, when paramedics raised issues, Lepine stonewalled them, according to the Star’s interviews with more than 30 front-line paramedics.
McKerlie did not say if Lepine resigned or was asked to leave.
Lepine made his way through the Crystal Palace shaking hands with colleagues Thursday morning before leaving the building.
“Tom was personally committed to this organization, our patients and the people of Ontario. We wish him all the best in his future endeavors,” McKerlie told staff.
ORNGE finances to be investigated by OPP
A series of stories in the Star detailed how taxpayers' money was behind a spending spree that included high salaries, payments from an Italian helicopter firm and loans made to former boss Dr. Chris Mazza.
Kevin Donovan Staff Reporter
The Ontario Provincial Police have been called in to investigate “financial irregularities” at ORNGE.
Health minister Deb Matthews made the decision to call in police after a draft copy of the ministry of finance's investigative report was sent to her late Wednesday, a ministry official confirms.
Thirty-two investigators with finance have been pouring over ORNGE files for a month. They were sent in after a series of stories in the Star detailing how taxpayers money was behind a spending spree that included high salaries, payments from an Italian helicopter firm and loans made to former boss Dr. Chris Mazza.
Earlier Thursday morning, a paramedic who rose through the ranks to become chief operating officer, left the air ambulance service.
In a note to staff, interim ORNGE boss Ron McKerlie praised Tom Lepine for his years of service.
“I want to personally thank Tom for his years of service and dedication to the air ambulance program and his support to me over the past four weeks as we have worked together,” McKerlie wrote.
“He has had an important role in the air ambulance program in Ontario dating back to the pre-Ornge days as a front-line flight paramedic, educator and manager.”
Lepine has been blamed by many front-line paramedics for standing by and allowing Mazza to make decisions that landed the service in hot water over the past two months.
As one of ORNGE’s top officials he presided over such things as the outfitting of aircraft with improper medical interiors and, when paramedics raised issues, Lepine stonewalled them, according to the Star’s interviews with more than 30 front-line paramedics.
McKerlie did not say if Lepine resigned or was asked to leave.
Lepine made his way through the Crystal Palace shaking hands with colleagues Thursday morning before leaving the building.
“Tom was personally committed to this organization, our patients and the people of Ontario. We wish him all the best in his future endeavors,” McKerlie told staff.
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orngecrush
- Rank 1
- Posts: 20
- Joined: Tue Feb 14, 2012 12:18 pm
Re: Mazza FIRED. Orgne in receivership
Starting to look good !!
Karen Howlett
Globe and Mail Update
Published Thursday, Feb. 16, 2012 11:45AM EST
Last updated Thursday, Feb. 16, 2012 1:04PM EST
Police have launched a criminal probe into Ontario's air ambulance service, according to media reports.
The Ontario Provincial Police swooped into Ornge's headquarters in Mississauga on Thursday morning. They were called in as a result of the findings made by a team of forensic auditors from the Ministry of Finance, who have spent the past few weeks poring over Ornge's financial records.
The probe is the latest blow for the McGuinty government. This is not the first time the OPP have been involved in an incident since the Liberals came to power in 2003. But Ornge is by far the biggest scandal under Premier Dalton McGuinty's watch.
Earlier on Thursday, it was announced that Ornge's chief operating officer had left the service, the latest in a string of departures from the executive suite.
In an internal memo to employees on Thursday, interim chief executive officer Ron McKerlie confirmed that Tom Lepine is no longer with Ornge, effective immediately.
“I want to personally thank Tom for his years of service and dedication to the air ambulance program,” Mr. McKerlie says in the memo. “Tom was personally committed to this organization, our patients and the people of Ontario.”
Mr. Lepine had been at Ornge since its inception in 2006, when the Ontario government turned over responsibility for managing all aspects of the province’s air ambulance service. Mr. Lepine has more than 20 years of experience as a paramedic and educator, according to his biography on Ornge’s website. He took on progressively senior management roles at Ornge, most recently overseeing its day-to-day operations.
Mr. McKerlie, a senior bureaucrat, has presided over the departure of several executives since he was parachuted into Ornge four weeks ago by Health Minister Deb Matthews.
Chris Mazza, the founder of Ornge, was terminated two weeks ago when a trustee in bankruptcy was appointed for a private for-profit consulting company created by the air ambulance. The bankruptcy gave Ornge the legal authority to terminate Dr. Mazza’s employment as chief executive officer without severance. Dr. Mazza had been on medical leave since December, and remained on the payroll of one of the consulting companies, Ornge Global GP Inc., earning $1.4-million a year.
Ornge is in the process of trying tor recover $1.2-million in loans to Dr. Mazza.
Maria Renzella, the only other employee of Ornge Global GP, was terminated as chief operating officer of Ornge Global Corporate Services at the same time as Dr. Mazza. She was also removed without severance pay after going on medical leave last week.
Karen Howlett
Globe and Mail Update
Published Thursday, Feb. 16, 2012 11:45AM EST
Last updated Thursday, Feb. 16, 2012 1:04PM EST
Police have launched a criminal probe into Ontario's air ambulance service, according to media reports.
The Ontario Provincial Police swooped into Ornge's headquarters in Mississauga on Thursday morning. They were called in as a result of the findings made by a team of forensic auditors from the Ministry of Finance, who have spent the past few weeks poring over Ornge's financial records.
The probe is the latest blow for the McGuinty government. This is not the first time the OPP have been involved in an incident since the Liberals came to power in 2003. But Ornge is by far the biggest scandal under Premier Dalton McGuinty's watch.
Earlier on Thursday, it was announced that Ornge's chief operating officer had left the service, the latest in a string of departures from the executive suite.
In an internal memo to employees on Thursday, interim chief executive officer Ron McKerlie confirmed that Tom Lepine is no longer with Ornge, effective immediately.
“I want to personally thank Tom for his years of service and dedication to the air ambulance program,” Mr. McKerlie says in the memo. “Tom was personally committed to this organization, our patients and the people of Ontario.”
Mr. Lepine had been at Ornge since its inception in 2006, when the Ontario government turned over responsibility for managing all aspects of the province’s air ambulance service. Mr. Lepine has more than 20 years of experience as a paramedic and educator, according to his biography on Ornge’s website. He took on progressively senior management roles at Ornge, most recently overseeing its day-to-day operations.
Mr. McKerlie, a senior bureaucrat, has presided over the departure of several executives since he was parachuted into Ornge four weeks ago by Health Minister Deb Matthews.
Chris Mazza, the founder of Ornge, was terminated two weeks ago when a trustee in bankruptcy was appointed for a private for-profit consulting company created by the air ambulance. The bankruptcy gave Ornge the legal authority to terminate Dr. Mazza’s employment as chief executive officer without severance. Dr. Mazza had been on medical leave since December, and remained on the payroll of one of the consulting companies, Ornge Global GP Inc., earning $1.4-million a year.
Ornge is in the process of trying tor recover $1.2-million in loans to Dr. Mazza.
Maria Renzella, the only other employee of Ornge Global GP, was terminated as chief operating officer of Ornge Global Corporate Services at the same time as Dr. Mazza. She was also removed without severance pay after going on medical leave last week.
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YYZSaabGuy
- Rank 8
- Posts: 851
- Joined: Wed Aug 04, 2010 7:32 am
- Location: On glideslope.
Re: Mazza FIRED. Orgne in receivership
The firm is getting to be quite adept at speedily removing Executive Management profiles from the Ornge.ca website - Lepine's photo and bio are already gone. Of course, they have been getting lots of practice - there has after all been a recurring need for this over the past few weeks.
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orngecrush
- Rank 1
- Posts: 20
- Joined: Tue Feb 14, 2012 12:18 pm
Re: Mazza FIRED. Orgne in receivership
Thank goodness then for the Wayback Machine ... http://www.archive.org/web/web.php
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orngecrush
- Rank 1
- Posts: 20
- Joined: Tue Feb 14, 2012 12:18 pm
Re: Mazza FIRED. Orgne in receivership
the Star story has been updated to add:
... auditors “have reason to believe a criminal offence has occurred” a police spokesperson said. Acting Inspector Cathy Bell said the force's Criminal Investigation Bureau will lead the probe. Based out of Orillia, the CIB handles major cases.
“We are conducting an investigation into possible criminal actions on the part of ORNGE,” said Bell. Asked if they were investigating the company or individuals, Bell said she did not have that information.
The focus of the investigation will be the $6.7 million payment from Italian helicopter firm AgustaWestland to a company led by Mazza after Ontario purchased choppers from the firm. The police will also look into $1.2 million in loans and a cash advance that flowed to Mazza.
... auditors “have reason to believe a criminal offence has occurred” a police spokesperson said. Acting Inspector Cathy Bell said the force's Criminal Investigation Bureau will lead the probe. Based out of Orillia, the CIB handles major cases.
“We are conducting an investigation into possible criminal actions on the part of ORNGE,” said Bell. Asked if they were investigating the company or individuals, Bell said she did not have that information.
The focus of the investigation will be the $6.7 million payment from Italian helicopter firm AgustaWestland to a company led by Mazza after Ontario purchased choppers from the firm. The police will also look into $1.2 million in loans and a cash advance that flowed to Mazza.
Re: Mazza FIRED. Orgne in receivership
Ornge to be restructured amid OPP probe
karen howlett AND jacquie mcnish
From Friday's Globe and Mail
Published Friday, Feb. 17, 2012 3:00AM EST
Last updated Friday, Feb. 17, 2012 7:44AM EST
The Ontario government is preparing to restructure Ornge amid an OPP probe into the troubled air ambulance service, the first major criminal investigation into a provincial agency on Premier Dalton McGuinty’s watch.
The Ontario Provincial Police investigation has Health Minister Deb Matthews on the defensive, with opposition members calling for her resignation on Thursday. Ms. Matthews acknowledged that Ornge operated without enough oversight from her ministry. Sources said she is expected to put the organization on a tighter leash by restructuring it.
The growing scandal over Ornge raises fresh questions about the role played by some of Canada’s most prominent legal and accounting firms, as well as the government itself. Documents obtained by The Globe and Mail show Ornge’s plans to house for-profit companies within the publicly funded entity stoked controversy not just among board members, but also lawyers at its lead law firm, Fasken Martineau.
A plan to lend $1.6-million of taxpayers’ money to an Ornge subsidiary was so unorthodox that it sparked opposing views among lawyers at Faskens, the documents show. Faskens partner Guy Giorno, a former chief of staff to Prime Minister Stephen Harper, warned in a 2007 memorandum to his colleagues that Ornge would violate provincial laws if it proceeded with the loan.
Alfred Apps, a Faskens lawyer who left the firm last week and a former president of the federal Liberal Party, disagreed. In a memo the same year to Ornge CEO Chris Mazza, he advised that keeping an investment in the private ventures to less than 2 per cent of the air ambulance’s revenues would not violate its agreement with the province.
A spokesman for Faskens declined to discuss the memos from Mr. Giorno and Mr. Apps. In a statement last night, Faskens managing partner David Corbett said the firm has “pledged its full co-operation and support” to the OPP investigation.
The OPP probe focuses on for-profit ventures Ornge created to generate revenue by turning the publicly funded air-ambulance service into a world-class medical transport business.
As well, the Health Ministry is investigating 13 Ornge-related incidents, including three deaths, to determine whether the care of patients was compromised in the name of profit.
Ornge emerged in 2006 out of the McGuinty government’s desire to shift services from bureaucrats to the private sector. The scandal has exposed what can happen when these ventures operate with little transparency or oversight: Taxpayers fund the organization and absorb the cost of potential business failures, while private sector partners pocket much of the profits.
Ms. Matthews said in an interview on Thursday that it is apparent to her now that Ornge must be more accountable. But critics want to know why it took her so long, as plenty of red flags were raised about Ornge.
Former New Democratic Party Leader Howard Hampton asked in November, 2010, how many for-profit companies Ornge had and whether Dr. Mazza and other executives were paid by more than one entity. Mr. Hampton, now a lawyer at Faskens specializing in mining and First Nations issues, said in an interview that he never got a response from Ms. Matthews.
Progressive Conservative MPP Frank Klees said in the legislature last April that there was no disclosure on whether public money was being used to subsidize the for-profit entities. But he, too, was rebuffed.
Ms. Matthews said officials at Ornge assured her that no public money was going into for-profit ventures.
“I think everyone’s feeling pretty let down,” she said. “We were lied to by Ornge on a number of occasions on a number of issues.”
The McGuinty government signed a performance agreement with Dr. Mazza in November, 2005, that gave Ornge a monopoly over the province’s air ambulance service. But the agreement was flawed, Ms. Matthews said. For starters, her ministry could not intervene in changes to Ornge’s corporate structure. And unlike officials at other publicly funded agencies, a source said, Ornge executives did not have to testify about the agency’s activities before an all-party committee of the legislature.
What also kept critics at bay, sources say, was the fact that Ornge’s strategies were given the seal of approval from top legal and accounting firms. According to documents obtained by The Globe, the country’s leading accounting firm, Price Waterhouse Coopers, and Davies Ward Phillips & Vineberg, another prominent Bay Street law firm, endorsed private-sector ventures.
PwC and Davies advised an independent committee of Ornge’s board last year that its plan to create private sector divisions was fair and legally sound. Shawn McReynolds, Davies' managing partner, declined to comment on Thursday.
A spokesman for Price Waterhouse Coopers was unable to offer immediate comment.
The Ministry of Health called in the OPP on Thursday as a result of the findings made by a team of forensic auditors from the Ministry of Finance, who have spent the past few weeks poring over Ornge's financial records. Sources said two transactions triggered the criminal probe: $1.2-million in loans made to Dr. Mazza that Ornge is now seeking to recover, and a $6.7-million payment Italian aviation company AgustaWestland channelled back to Ornge as part of the air ambulance’s purchase of 12 helicopters for $148-million.
A source close to Dr. Mazza said the loans were approved by the board. He also said Dr. Mazza sought advice from Faskens on the “propriety” of the payment from Agusta. The source said Dr. Mazza is “not in a position to comment.”
A Faskens' spokesman said the firm will not comment on matters now before the OPP.
Even as news broke of the police probe, it appeared to be business as usual at Ornge's headquarters in Mississauga. No police officers were in sight, couriers continued to make deliveries, and staff came and went through the afternoon. Most employees would not talk, but one said nothing unusual was happening inside.
At the legislature, Mr. Klees, the Tory MPP, called on Ms. Matthews to step aside until the probe is complete.
“I’m not going anywhere,” Ms. Matthews said. “I’ve got lots of work to do.”
karen howlett AND jacquie mcnish
From Friday's Globe and Mail
Published Friday, Feb. 17, 2012 3:00AM EST
Last updated Friday, Feb. 17, 2012 7:44AM EST
The Ontario government is preparing to restructure Ornge amid an OPP probe into the troubled air ambulance service, the first major criminal investigation into a provincial agency on Premier Dalton McGuinty’s watch.
The Ontario Provincial Police investigation has Health Minister Deb Matthews on the defensive, with opposition members calling for her resignation on Thursday. Ms. Matthews acknowledged that Ornge operated without enough oversight from her ministry. Sources said she is expected to put the organization on a tighter leash by restructuring it.
The growing scandal over Ornge raises fresh questions about the role played by some of Canada’s most prominent legal and accounting firms, as well as the government itself. Documents obtained by The Globe and Mail show Ornge’s plans to house for-profit companies within the publicly funded entity stoked controversy not just among board members, but also lawyers at its lead law firm, Fasken Martineau.
A plan to lend $1.6-million of taxpayers’ money to an Ornge subsidiary was so unorthodox that it sparked opposing views among lawyers at Faskens, the documents show. Faskens partner Guy Giorno, a former chief of staff to Prime Minister Stephen Harper, warned in a 2007 memorandum to his colleagues that Ornge would violate provincial laws if it proceeded with the loan.
Alfred Apps, a Faskens lawyer who left the firm last week and a former president of the federal Liberal Party, disagreed. In a memo the same year to Ornge CEO Chris Mazza, he advised that keeping an investment in the private ventures to less than 2 per cent of the air ambulance’s revenues would not violate its agreement with the province.
A spokesman for Faskens declined to discuss the memos from Mr. Giorno and Mr. Apps. In a statement last night, Faskens managing partner David Corbett said the firm has “pledged its full co-operation and support” to the OPP investigation.
The OPP probe focuses on for-profit ventures Ornge created to generate revenue by turning the publicly funded air-ambulance service into a world-class medical transport business.
As well, the Health Ministry is investigating 13 Ornge-related incidents, including three deaths, to determine whether the care of patients was compromised in the name of profit.
Ornge emerged in 2006 out of the McGuinty government’s desire to shift services from bureaucrats to the private sector. The scandal has exposed what can happen when these ventures operate with little transparency or oversight: Taxpayers fund the organization and absorb the cost of potential business failures, while private sector partners pocket much of the profits.
Ms. Matthews said in an interview on Thursday that it is apparent to her now that Ornge must be more accountable. But critics want to know why it took her so long, as plenty of red flags were raised about Ornge.
Former New Democratic Party Leader Howard Hampton asked in November, 2010, how many for-profit companies Ornge had and whether Dr. Mazza and other executives were paid by more than one entity. Mr. Hampton, now a lawyer at Faskens specializing in mining and First Nations issues, said in an interview that he never got a response from Ms. Matthews.
Progressive Conservative MPP Frank Klees said in the legislature last April that there was no disclosure on whether public money was being used to subsidize the for-profit entities. But he, too, was rebuffed.
Ms. Matthews said officials at Ornge assured her that no public money was going into for-profit ventures.
“I think everyone’s feeling pretty let down,” she said. “We were lied to by Ornge on a number of occasions on a number of issues.”
The McGuinty government signed a performance agreement with Dr. Mazza in November, 2005, that gave Ornge a monopoly over the province’s air ambulance service. But the agreement was flawed, Ms. Matthews said. For starters, her ministry could not intervene in changes to Ornge’s corporate structure. And unlike officials at other publicly funded agencies, a source said, Ornge executives did not have to testify about the agency’s activities before an all-party committee of the legislature.
What also kept critics at bay, sources say, was the fact that Ornge’s strategies were given the seal of approval from top legal and accounting firms. According to documents obtained by The Globe, the country’s leading accounting firm, Price Waterhouse Coopers, and Davies Ward Phillips & Vineberg, another prominent Bay Street law firm, endorsed private-sector ventures.
PwC and Davies advised an independent committee of Ornge’s board last year that its plan to create private sector divisions was fair and legally sound. Shawn McReynolds, Davies' managing partner, declined to comment on Thursday.
A spokesman for Price Waterhouse Coopers was unable to offer immediate comment.
The Ministry of Health called in the OPP on Thursday as a result of the findings made by a team of forensic auditors from the Ministry of Finance, who have spent the past few weeks poring over Ornge's financial records. Sources said two transactions triggered the criminal probe: $1.2-million in loans made to Dr. Mazza that Ornge is now seeking to recover, and a $6.7-million payment Italian aviation company AgustaWestland channelled back to Ornge as part of the air ambulance’s purchase of 12 helicopters for $148-million.
A source close to Dr. Mazza said the loans were approved by the board. He also said Dr. Mazza sought advice from Faskens on the “propriety” of the payment from Agusta. The source said Dr. Mazza is “not in a position to comment.”
A Faskens' spokesman said the firm will not comment on matters now before the OPP.
Even as news broke of the police probe, it appeared to be business as usual at Ornge's headquarters in Mississauga. No police officers were in sight, couriers continued to make deliveries, and staff came and went through the afternoon. Most employees would not talk, but one said nothing unusual was happening inside.
At the legislature, Mr. Klees, the Tory MPP, called on Ms. Matthews to step aside until the probe is complete.
“I’m not going anywhere,” Ms. Matthews said. “I’ve got lots of work to do.”
Re: Mazza FIRED. Orgne in receivership
Ontario set to tighten control of troubled air ambulance service
karen howlett
Globe and Mail Update
Published Friday, Feb. 17, 2012 11:38AM EST
Last updated Friday, Feb. 17, 2012 11:46AM EST
The Ontario government will announce today that it is putting the province’s troubled air ambulance service on a tighter leash, one day after the OPP launched a criminal probe into Ornge.
Health Minister Deb Matthews plans to hold a news conference at 2 p.m. ET at the provincial legislature, where she will unveil measures to “improve accountability” at Ornge.
Ms. Matthews said in an earlier interview that the agreement her predecessor, former health minister George Smitherman, signed with Ornge officials in November, 2005 is “flawed.”
The performance agreement gave Ornge a monopoly over the province’s air ambulance service. It also gave Ornge officials free rein to operate the service with little oversight from the government, according to a copy of the document obtained by The Globe and Mail.
Former Ornge chairman Rainer Beltzner and former CEO Chris Mazza created a number of private, for-profit companies that are now at the centre of the investigation by the Ontario Provincial Police’s criminal investigations branch.
Mr. Beltzner resigned earlier this month when Ms. Matthews appointed a new board. He also resigned last Friday as chairman of the Board of Governors at Humber College.
Dr. Mazza was terminated on Feb. 2. He had been on medical leave since December.
The Ministry of Health called in the OPP on Thursday as a result of the findings made by a team of forensic auditors from the Finance Ministry, who have spent the past few weeks poring over Ornge’s financial records.
The OPP will conduct an investigation into “possible criminal activities,” OPP acting inspector Cathy Bell said on Thursday. The question at the heart of the probe is whether Ornge used taxpayers’ money to fund its private for-profit ventures.
Ms. Matthews met with officials from Ornge last December in her office, where she said they assured her they were conducting their affairs in accordance with the performance agreement. Ornge receives $150-million in funding from the province to manage all aspects of air ambulance services.
“We were lied to by Ornge on a number of occasions on a number of issues,” Ms. Matthews said in the interview.
Zita Astravas, Ms. Matthews’ spokeswoman, said in an email response Thursday evening to The Globe that Ornge’s legal advisers “assured us that public funds would not be used to fund the activities for their for-profit entities, when it appears that was not the case.”
Documents obtained by The Globe show that Alfred Apps, a Fasken Martineau lawyer who recently left the firm, advised Dr. Mazza that keeping an investment in the private ventures to less than 2 per cent of the air ambulance’s revenues would not violate its agreement with the province.
A spokesman for Faskens has declined to discuss the memo Mr. Apps wrote back in June, 2007.
Ms. Astravas said in the email to The Globe that Ornge’s former leaders also assured ministry officials that questions about the medical interiors of Ornge’s helicopter fleet had been addressed, “when they had not.”
The Globe has reported that flaws with the medical interiors make it difficult for paramedics to perform life-saving CPR on patients.
The performance agreement itself gave the Health Ministry no ability to intervene in changes to Ornge’s corporate structure. A source said Ornge officials could not be called to testify before an all-party committee of the legislature, the venue where many other publicly-funded entities are held to account.
The ministry also had to give Ornge three years’ notice to make any changes to the performance agreement.
karen howlett
Globe and Mail Update
Published Friday, Feb. 17, 2012 11:38AM EST
Last updated Friday, Feb. 17, 2012 11:46AM EST
The Ontario government will announce today that it is putting the province’s troubled air ambulance service on a tighter leash, one day after the OPP launched a criminal probe into Ornge.
Health Minister Deb Matthews plans to hold a news conference at 2 p.m. ET at the provincial legislature, where she will unveil measures to “improve accountability” at Ornge.
Ms. Matthews said in an earlier interview that the agreement her predecessor, former health minister George Smitherman, signed with Ornge officials in November, 2005 is “flawed.”
The performance agreement gave Ornge a monopoly over the province’s air ambulance service. It also gave Ornge officials free rein to operate the service with little oversight from the government, according to a copy of the document obtained by The Globe and Mail.
Former Ornge chairman Rainer Beltzner and former CEO Chris Mazza created a number of private, for-profit companies that are now at the centre of the investigation by the Ontario Provincial Police’s criminal investigations branch.
Mr. Beltzner resigned earlier this month when Ms. Matthews appointed a new board. He also resigned last Friday as chairman of the Board of Governors at Humber College.
Dr. Mazza was terminated on Feb. 2. He had been on medical leave since December.
The Ministry of Health called in the OPP on Thursday as a result of the findings made by a team of forensic auditors from the Finance Ministry, who have spent the past few weeks poring over Ornge’s financial records.
The OPP will conduct an investigation into “possible criminal activities,” OPP acting inspector Cathy Bell said on Thursday. The question at the heart of the probe is whether Ornge used taxpayers’ money to fund its private for-profit ventures.
Ms. Matthews met with officials from Ornge last December in her office, where she said they assured her they were conducting their affairs in accordance with the performance agreement. Ornge receives $150-million in funding from the province to manage all aspects of air ambulance services.
“We were lied to by Ornge on a number of occasions on a number of issues,” Ms. Matthews said in the interview.
Zita Astravas, Ms. Matthews’ spokeswoman, said in an email response Thursday evening to The Globe that Ornge’s legal advisers “assured us that public funds would not be used to fund the activities for their for-profit entities, when it appears that was not the case.”
Documents obtained by The Globe show that Alfred Apps, a Fasken Martineau lawyer who recently left the firm, advised Dr. Mazza that keeping an investment in the private ventures to less than 2 per cent of the air ambulance’s revenues would not violate its agreement with the province.
A spokesman for Faskens has declined to discuss the memo Mr. Apps wrote back in June, 2007.
Ms. Astravas said in the email to The Globe that Ornge’s former leaders also assured ministry officials that questions about the medical interiors of Ornge’s helicopter fleet had been addressed, “when they had not.”
The Globe has reported that flaws with the medical interiors make it difficult for paramedics to perform life-saving CPR on patients.
The performance agreement itself gave the Health Ministry no ability to intervene in changes to Ornge’s corporate structure. A source said Ornge officials could not be called to testify before an all-party committee of the legislature, the venue where many other publicly-funded entities are held to account.
The ministry also had to give Ornge three years’ notice to make any changes to the performance agreement.
Re: Mazza FIRED. Orgne in receivership
I'm surprised Doc is not on here saying "I told you so!". He sure nailed this one on the head!!
